--- title: "KEYCORP REPORTS SECOND QUARTER 2026 NET INCOME OF $472 MILLION, OR $0.44 PER DILUTED COMMON SHARE INCREASING 26% YEAR-OVER-YEAR | KEY Stock News" type: "News" locale: "en" url: "https://longbridge.com/en/news/293327494.md" description: "KeyCorp reported Q2 2026 net income of $472 million ($0.44 per diluted share), up 26% year-over-year. Revenue reached $1.96 billion, a 7% increase, driven by a 9% rise in net interest income to $1.26 billion and a net interest margin expansion to 2.89%. The company repurchased $341 million in shares, maintaining a Common Equity Tier 1 ratio of 11.2%. CEO Chris Gorman highlighted strong performance in investment banking and wealth management." datetime: "2026-07-21T02:30:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293327494.md) - [en](https://longbridge.com/en/news/293327494.md) - [zh-HK](https://longbridge.com/zh-HK/news/293327494.md) --- # KEYCORP REPORTS SECOND QUARTER 2026 NET INCOME OF $472 MILLION, OR $0.44 PER DILUTED COMMON SHARE INCREASING 26% YEAR-OVER-YEAR | KEY Stock News **Revenue of $1.96 billion, up 7% year-over-year** **Net interest income up 9% year-over-year and 2% sequentially; net interest margin of 2.89%** **increased 2 bps sequentially** **Period-end loans up $1.2 billion sequentially, with commercial and industrial loans up $2.1 billion or 3%** **Net charge-offs of 42 bps; allowance coverage ratio declined 4 bps sequentially to 1.56%** **Common Equity Tier 1 ratio of 11.2%****(a)****; repurchased $341 million of common shares during the quarter** , /PRNewswire/ -- KeyCorp (NYSE: KEY) announced net income from continuing operations attributable to Key common shareholders of $472 million, or $0.44 per diluted common share,for the second quarter of 2026. For the first quarter of 2026, net income from continuing operations attributable to Key common shareholders was $486 million, or $0.44 per diluted common share. For the second quarter of 2025, KeyCorp reported net income from continuing operations attributable to Key common shareholders of $387 million, or $0.35 per diluted common share. **Comments from Chairman and CEO, Chris Gorman** _"Our second quarter results reflect the strength of our franchise, disciplined execution, and sustained momentum across our businesses. We delivered 7% revenue growth and generated approximately 130 basis points of operating leverage__(b)_ _on a year-over-year basis. We expanded net interest margin and grew net interest income both sequentially and year-over-year._ _We continue to deepen client relationships while attracting new clients across our markets. Our priority growth businesses - investment banking, commercial payments, and wealth management - are performing exceptionally well. Investment banking pipelines grew 9% sequentially. Commercial payments continued to deliver strong, double digit fee growth year-over-year. Assets under management grew to a record $74 billion. These results reinforce the value of our relationship-driven model and the differentiated capabilities we have scaled across multiple businesses._ _I remain confident in our ability to generate a return on tangible common equity exceeding 15% by year-end 2027. We remain committed to delivering attractive returns to shareholders through both the return_ _on_ _and the return_ _of_ _capital. During the quarter, we repurchased more than $340 million of common shares, reflecting our confidence in the business and our commitment to creating long-term shareholder value._ _We are operating from a position of strength, supported by a resilient balance sheet, a diversified business model, and strong capital generation. While the operating environment remains dynamic, our performance in the first half of the year demonstrates the power of our strategy, the depth of our client relationships, and the agility of our teammates._ _Looking ahead, we remain focused on the significant organic growth opportunities in front of us, investing in the capabilities that will further differentiate our franchise, and delivering value for all of our stakeholders."_ (a) June 30, 2026 ratio is estimated. (b) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons. **Selected Financial Highlights** _Dollars in millions, except per share data_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** Income (loss) from continuing operations attributable to Key common shareholders **$ 472** $ 486 $ 387 (2.9) % 22.0 % Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution **0.44** 0.44 0.35 — 25.7 Book value at period end **16.19** 16.13 15.32 0.4 5.7 Return on average tangible common equity from continuing operations (a) **12.89 %** 13.02 % 11.09 % (13) bps 180 bps Return on average total assets from continuing operations **1.08** 1.14 .91 (6) 17 Common Equity Tier 1 ratio (b) **11.2** 11.4 11.7 (20) (50) Net interest margin (TE) from continuing operations **2.89** 2.87 2.66 2 23 (a) 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. (b) June 30, 2026 ratio is estimated. TE = Taxable Equivalent **INCOME STATEMENT HIGHLIGHTS** **Revenue** _Dollars in millions_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** Net interest income (TE) (a) **$ 1,258** $ 1,230 $ 1,150 2.3 % 9.4 % Noninterest income **706** 723 690 (2.4) 2.3 Total revenue (TE) **$ 1,964** $ 1,953 $ 1,840 0.6 % 6.7 % (a) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures. The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons. TE = Taxable Equivalent Taxable-equivalent net interest income was $1.26 billion for the second quarter of 2026 and the net interest margin was 2.89%. Compared to the second quarter of 2025, net interest income increased by $108 million, and the net interest margin increased by 23 basis points. These increases were driven by a reduction in deposit costs as a result of declining interest rates and proactive deposit beta management, the reinvestment of proceeds from maturing low-yielding investment securities and fixed-rate swaps into higher yielding investments, and a shift in the balance sheet composition to a more favorable mix of higher-yielding commercial and industrial loans. These benefits were partially offset by the impact of lower interest rates on repricing earning assets. Compared to the first quarter of 2026, taxable-equivalent net interest income increased by $28 million, and the net interest margin increased by 2 basis points. These increases reflect growth in commercial and industrial loans and the reinvestment of proceeds from maturing low-yielding investment securities and fixed-rate swaps into higher-yielding investments. Additionally, net interest income benefited from one additional day in the second quarter of 2026 compared to the first quarter of 2026. **Noninterest Income** _Dollars in millions_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** Trust and investment services income **$ 159** $ 157 $ 146 1.3 % 8.9 % Investment banking and debt placement fees **169** 197 178 (14.2) (5.1) Cards and payments income **94** 86 85 9.3 10.6 Service charges on deposit accounts **77** 77 73 — 5.5 Corporate services income **80** 71 76 12.7 5.3 Commercial mortgage servicing fees **49** 62 70 (21.0) (30.0) Corporate-owned life insurance income **33** 34 32 (2.9) 3.1 Consumer mortgage income **17** 13 15 30.8 13.3 Operating lease income and other leasing gains **10** 8 14 25.0 (28.6) Other income **15** 18 1 (16.7) N/M Net securities gains (losses) **3** — — N/M N/M Total noninterest income **$ 706** $ 723 $ 690 (2.4) % 2.3 % Compared to the second quarter of 2025, noninterest income increased by $16 million. The increase was driven by a $13 million increase in trust and investment services income, as well as a $14 million increase in other income. These were partially offset by a $21 million decrease in commercial mortgage servicing fees. Compared to the first quarter of 2026, noninterest income decreased by $17 million. The decrease was driven by a $28 million decrease in investment banking and debt placement fees, and a $13 million decrease in commercial mortgage servicing fees. These were partially offset by a $9 million increase in corporate services income and an $8 million increase in cards and payments income. **Noninterest Expense** _Dollars in millions_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** Personnel expense **$ 786** $ 743 $ 705 5.8 % 11.5 % Net occupancy **68** 68 69 — (1.4) Computer processing **108** 111 107 (2.7) 0.9 Business services and professional fees **46** 36 48 27.8 (4.2) Equipment **22** 19 21 15.8 4.8 Operating lease expense **7** 7 10 — (30.0) Marketing **22** 18 24 22.2 (8.3) Other expense **158** 179 170 (11.7) (7.1) Total noninterest expense **$ 1,217** $ 1,181 $ 1,154 3.0 % 5.5 % Compared to the second quarter of 2025, noninterest expense increased by $63 million. The increase was predominantly driven by an $81 million increase in personnel expense primarily related to employee benefits, incentive compensation associated with noninterest income growth, and continued investments in people. Compared to the first quarter of 2026, noninterest expense increased by $36 million. The increase was predominantly driven by a $43 million increase in personnel expense, primarily related to incentive compensation, as well as a $10 million increase in business services and professional fees. These were partially offset by a $21 million decrease in other expense primarily related to lower charitable contributions. **BALANCE SHEET HIGHLIGHTS** **Average Loans** _Dollars in millions_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** Commercial and industrial (a) **$ 62,134** $ 59,149 $ 55,604 5.0 % 11.7 % Other commercial loans **18,844** 18,918 18,708 (0.4) 0.7 Total consumer loans **29,094** 29,670 31,403 (1.9) (7.4) Total loans **$ 110,072** $ 107,737 $ 105,715 2.2 % 4.1 % (a) Commercial and industrial average loan balances include $209 million, $205 million, and $218 million of assets from commercial credit cards at June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Average loans were $110.1 billion for the second quarter of 2026, an increase of $4.4 billion compared to the second quarter of 2025. Average commercial loans increased by $6.7 billion, primarily driven by a $6.5 billion increase in commercial and industrial loans. Average consumer loans declined by $2.3 billion, reflective of the intentional run-off of low-yielding loans. Compared to the first quarter of 2026, average loans increased by $2.3 billion. Average commercial loans increased $2.9 billion, primarily driven by an increase in commercial and industrial loans. Average consumer loans declined by $576 million, reflective of broad-based declines across all consumer loan categories. **Average Deposits** _Dollars in millions_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** Non-time deposits **$ 135,828** $ 135,522 $ 131,845 0.2 % 3.0 % Time deposits **11,749** 11,777 15,601 (0.2) (24.7) Total deposits **$ 147,577** $ 147,299 $ 147,446 0.2 % 0.1 % Cost of total deposits **1.63 %** 1.65 % 1.99 % (2) bps (36) bps Average deposits totaled $147.6 billion for the second quarter of 2026, an increase of $131 million compared to the year-ago quarter, reflecting growth in demand deposits, partially offset by a decline in time deposits. Compared to the first quarter of 2026, average deposits increased by $278 million. The increase was driven by growth in noninterest bearing deposits, partially offset by lower demand deposits. The rate paid on interest-bearing deposits was flat sequentially, and the overall cost of deposits declined by 2 basis points to 1.63%. **ASSET QUALITY** _Dollars in millions_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** Net loan charge-offs **$ 115** $ 101 $ 102 13.9 % 12.7 % Net loan charge-offs to average total loans **0.42 %** 0.38 % 0.39 % 4 bps 3 bps Nonperforming loans at period end **$ 809** $ 682 $ 696 18.6 % 16.2 % Nonperforming loans to period-end portfolio loans **0.73 %** 0.62 % 0.65 % 11 bps 8 bps Nonperforming assets at period end **$ 818** $ 692 $ 707 18.2 % 15.7 % Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets **0.74 %** 0.63 % 0.66 % 11 bps 8 bps Allowance for loan and lease losses **$ 1,445** $ 1,449 $ 1,446 (0.3) % (0.1) % Allowance for credit losses **1,722** 1,745 1,743 (1.3) % (1.2) % Allowance for credit losses to period-end loans **1.56 %** 1.60 % 1.64 % (4) bps (8) bps Provision for credit losses **$ 92** $ 106 $ 138 (13.2) % (33.3) % Allowance for loan and lease losses to nonperforming loans **179 %** 212 % 208 % N/M N/M Allowance for credit losses to nonperforming loans **213** 256 250 N/M N/M Net loan charge-offs for the second quarter of 2026 totaled $115 million, or 0.42% of average total loans. These results compare to $102 million, or 0.39%, for the second quarter of 2025 and $101 million, or 0.38%, for the first quarter of 2026. Key's allowance for credit losses was $1.7 billion, or 1.56% of total period-end loans at June 30, 2026, compared to 1.64% at June 30, 2025, and 1.60% at March 31, 2026. A reserve release of $23 million during the second quarter of 2026 was the result of resilient economic scenario assumptions and the improving mix shift of commercial loans. At June 30, 2026, Key's nonperforming loans totaled $809 million, which represented 0.73% of period-end portfolio loans. These results compare to 0.65% at June 30, 2025, and 0.62% at March 31, 2026. Nonperforming assets at June 30, 2026, totaled $818 million, and represented 0.74% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.66% at June 30, 2025, and 0.63% at March 31, 2026. **CAPITAL** Key's estimated risk-based capital ratios, included in the following table, continued to exceed all "well-capitalized" regulatory benchmarks at June 30, 2026. **Capital Ratios** **6/30/2026** **3/31/2026** **6/30/2025** Common Equity Tier 1 (a) **11.2 %** 11.4 % 11.7 % Tier 1 risk-based capital (a) **12.8** 13.0 13.4 Total risk-based capital (a) **14.8** 15.2 15.7 Tangible common equity to tangible assets (b) **7.7** 8.0 7.8 Leverage (a) **10.3** 10.5 10.3 (a) June 30, 2026 ratio is estimated. (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 regulatory capital position remained strong in the second quarter of 2026. As shown in the preceding table, at June 30, 2026, Key's estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.2% and 12.8%, respectively. **Summary of Changes in Common Shares Outstanding** _In thousands_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** Shares outstanding at beginning of period **1,087,293** 1,102,401 1,111,986 (1.4) % (2.2) % Share repurchases **(15,531)** (17,969) — (13.6) N/M Shares issued under employee compensation plans (net of cancellations and returns) **273** 2,861 467 (90.5) (41.5) Shares outstanding at end of period **1,072,035** 1,087,293 1,112,453 (1.4) % (3.6) % During the second quarter of 2026, Key declared a dividend of $.205 per common share. The reduction in share count was driven by $341 million of common shares repurchased. **LINE OF BUSINESS RESULTS** The following table shows the contribution made by each major business segment to Key's taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. For more detailed financial information pertaining to each business segment, see the tables at the end of this release. **Major Business Segments** _Dollars in millions_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** **Revenue from continuing operations (TE)** Consumer Bank **$ 1,010** $ 977 $ 966 3.4 % 4.6 % Commercial Bank **1,108** 1,119 1,074 (1.0) 3.2 Other (a) **(154)** (143) (200) (7.7) 23.0 Total **$ 1,964** $ 1,953 $ 1,840 0.6 % 6.7 % **Income (loss) from continuing operations attributable to Key** Consumer Bank **$ 203** $ 174 $ 165 16.7 % 23.0 % Commercial Bank **423** 452 423 (6.4) — Other (a) **(118)** (104) (165) (13.5) 28.5 Total **$ 508** $ 522 $ 423 (2.7) % 20.1 % (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 represent the unallocated portion of nonearning assets of corporate support functions. Other also includes the residual net impact of our internal funds transfer pricing methodology, which arise from centrally managed interest rate activities and asset-liability repricing differences. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. 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 **Consumer Bank** _Dollars in millions_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** **Summary of operations** Net interest income (TE) **$ 757** $ 738 $ 731 2.6 % 3.6 % Noninterest income **253** 239 235 5.9 7.7 Total revenue (TE) **1,010** 977 966 3.4 4.6 Provision for credit losses **26** 40 55 (35.0) (52.7) Noninterest expense **716** 708 693 1.1 3.3 Income (loss) before income taxes (TE) **268** 229 218 17.0 22.9 Allocated income taxes (benefit) and TE adjustments **65** 55 53 18.2 22.6 Net income (loss) attributable to Key **$ 203** $ 174 $ 165 16.7 % 23.0 % **Average balances** Loans and leases **$ 33,263** $ 33,997 $ 36,138 (2.2) % (8.0) % Total assets **36,630** 37,341 39,156 (1.9) (6.5) Deposits **87,399** 87,796 88,002 (0.5) (0.7) **Assets under management at period end** **$ 74,204** $ 69,756 $ 64,244 6.4 % 15.5 % **Additional Consumer Bank Data** _Dollars in millions_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** **Noninterest income** Trust and investment services income **$ 135** $ 130 $ 119 3.8 % 13.4 % Service charges on deposit accounts **33** 34 35 (2.9) (5.7) Cards and payments income **60** 54 60 11.1 — Consumer mortgage income **16** 13 14 23.1 14.3 Other noninterest income **9** 8 7 12.5 28.6 Total noninterest income **$ 253** $ 239 $ 235 5.9 % 7.7 % **Average deposit balances** Money market deposits **$ 36,116** $ 35,920 $ 34,524 0.5 % 4.6 % Demand deposits **22,861** 23,214 22,784 (1.5) 0.3 Savings deposits **4,238** 4,199 4,406 0.9 (3.8) Time deposits **10,102** 10,610 11,907 (4.8) (15.2) Noninterest-bearing deposits **14,082** 13,853 14,381 1.7 (2.1) Total deposits **$ 87,399** $ 87,796 $ 88,002 (0.5) % (0.7) % **Other data** Branches **939** 940 943 Automated teller machines **1,107** 1,112 1,166 **Consumer Bank Summary of Operations (2Q26 vs. 2Q25)** - Key's Consumer Bank recorded net income attributable to Key of $203 million for the second quarter of 2026, compared to $165 million for the year-ago quarter - Taxable-equivalent net interest income increased by $26 million, or 3.6%, compared to the second quarter of 2025 - Average loans and leases decreased $2.9 billion, or 8.0%, from the second quarter of 2025, reflective of the intentional run-off of low-yielding loans - Average deposits decreased $603 million, or 0.7%, from the second quarter of 2025, driven by lower time deposits, partially offset by an increase in money market deposits - Provision for credit losses decreased $29 million compared to the second quarter of 2025, primarily driven by favorable economic assumptions and portfolio credit trends - Noninterest income increased $18 million from the year-ago quarter, primarily driven by higher trust and investment services income - Noninterest expense increased $23 million from the year-ago quarter, primarily driven by higher personnel expense **Commercial Bank** _Dollars in millions_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** **Summary of operations** Net interest income (TE) **$ 697** $ 674 $ 649 3.4 % 7.4 % Noninterest income **411** 445 425 (7.6) (3.3) Total revenue (TE) **1,108** 1,119 1,074 (1.0) 3.2 Provision for credit losses **67** 70 84 (4.3) (20.2) Noninterest expense **503** 474 451 6.1 11.5 Income (loss) before income taxes (TE) **538** 575 539 (6.4) (0.2) Allocated income taxes and TE adjustments **115** 123 116 (6.5) (0.9) Net income (loss) attributable to Key **$ 423** $ 452 $ 423 (6.4) % — % **Average balances** Loans and leases **$ 76,238** $ 73,146 $ 69,089 4.2 % 10.3 % Loans held for sale **936** 958 707 (2.3) 32.4 Total assets **85,793** 82,455 78,624 4.0 9.1 Deposits **58,895** 58,929 55,927 (0.1) 5.3 **Additional Commercial Bank Data** _Dollars in millions_ **Change 2Q26 vs.** **2Q26** **1Q26** **2Q25** **1Q26** **2Q25** **Noninterest income** Trust and investment services income **$ 24** $ 27 $ 26 (11.1) % (7.7) Investment banking and debt placement fees **169** 198 179 (14.6) (5.6) % Cards and payments income **29** 27 21 7.4 38.1 Service charges on deposit accounts **44** 43 39 2.3 12.8 Corporate services income **78** 70 75 11.4 4.0 Commercial mortgage servicing fees **49** 62 70 (21.0) (30.0) Operating lease income and other leasing gains **10** 8 15 25.0 (33.3) Other noninterest income **8** 10 — (20.0) N/M Total noninterest income **$ 411** $ 445 $ 425 (7.6) % (3.3) % **Commercial Bank Summary of Operations (2Q26 vs. 2Q25)** - Key's Commercial Bank recorded net income attributable to Key of $423 million for the second quarter of 2026, compared to $423 million for the year-ago quarter - Taxable-equivalent net interest income increased by $48 million, or 7.4%, compared to the second quarter of 2025 - Average loan and lease balances increased $7.1 billion, or 10.3%, compared to the second quarter of 2025, driven by an increase in commercial and industrial loans - Average deposit balances increased $3.0 billion compared to the second quarter of 2025, driven by higher client deposits - Provision for credit losses decreased $17 million compared to the second quarter of 2025, driven by the impact to reserves due to improved economic assumptions - Noninterest income decreased $14 million compared to the second quarter of 2025, primarily driven by a decrease in commercial mortgage servicing fees - Noninterest expense increased $52 million compared to the second quarter of 2025, driven by an increase in personnel expense and support and overhead expense KeyCorp's roots trace back more than 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 $191 billion at June 30, 2026. 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 approximately 950 branches and approximately 1,100 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 Member FDIC. _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, 2025 and 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, 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, the soundness of other financial institutions, and the impact of changes in the interest rate environment. 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._ _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 9:00 a.m. ET, on July_ _21, 2026. A replay of the call will be available on our website through July_ _21, 2027__._ _For up-to-date company information, media contacts, and facts and figures about Key's lines of business, visit our Media Newsroom at_ **_https://www.key.com/newsroom_**_._ \*\*\*\*\* **KeyCorp ****Second Quarter 2026 ****Financial Supplement** Page 12 Basis of Presentation 13 Financial Highlights 15 GAAP to Non-GAAP Reconciliation 17 Consolidated Balance Sheets 18 Consolidated Statements of Income 19 Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations 21 Noninterest Expense 21 Personnel Expense 21 Loan Composition 21 Loans Held for Sale Composition 22 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 24 Selected Items Impact on Earnings **Basis of Presentation** **Use of Non-GAAP Financial Measures **This document contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Key's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document, the financial supplement, or conference call slides related to this document, all of which can be found on Key's website (www.key.com/ir). **Forward-Looking Non-GAAP Financial Measures** From time to time Key may discuss forward-looking non-GAAP financial measures. Key is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because Key is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results. **Annualized Data **Certain returns, yields, performance ratios, or quarterly growth rates are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. **Taxable Equivalent **The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt loans, and certain lease assets, on a common basis that facilitates comparison of results to peers. **Earnings Per Share Equivalent **Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent. **Financial Highlights** (Dollars in millions, except per share amounts) **Three months ended** **6/30/2026** **3/31/2026** **6/30/2025** **Summary of operations** Net interest income (TE) **$ 1,258** $ 1,230 $ 1,150 Noninterest income **706** 723 690 Total revenue (TE) **1,964** 1,953 1,840 Provision for credit losses **92** 106 138 Noninterest expense **1,217** 1,181 1,154 Income (loss) from continuing operations attributable to Key **508** 522 423 Income (loss) from discontinued operations, net of taxes **1** — 2 Net income (loss) attributable to Key **509** 522 425 Income (loss) from continuing operations attributable to Key common shareholders **472** 486 387 Income (loss) from discontinued operations, net of taxes **1** — 2 Net income (loss) attributable to Key common shareholders **473** 486 389 **Per common share** Income (loss) from continuing operations attributable to Key common shareholders **$ 0.44** $ 0.45 $ 0.35 Income (loss) from discontinued operations, net of taxes **—** — — Net income (loss) attributable to Key common shareholders (a) **0.44** 0.45 0.35 Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution **0.44** 0.44 0.35 Income (loss) from discontinued operations, net of taxes — assuming dilution **—** — — Net income (loss) attributable to Key common shareholders — assuming dilution (a) **0.44** 0.44 0.35 Cash dividends declared **0.205** 0.205 0.205 Book value at period end **16.19** 16.13 15.32 Tangible book value at period end **13.62** 13.60 12.83 Market price at period end **23.05** 20.05 17.42 **Performance ratios** **From continuing operations:** Return on average total assets **1.08 %** 1.14 % 0.91 % Return on average common equity **10.85** 11.02 9.26 Return on average tangible common equity (b) **12.89** 13.02 11.09 Net interest margin (TE) **2.89** 2.87 2.66 Cash efficiency ratio (b) **61.9** 60.4 62.4 **From consolidated operations:** Return on average total assets **1.08 %** 1.14 % 0.91 % Return on average common equity **10.87** 11.02 9.31 Return on average tangible common equity (b) **12.91** 13.02 11.15 Net interest margin (TE) **2.89** 2.87 2.66 Loan to deposit (c) **73.0** 74.6 72.9 **Capital ratios at period end** Key shareholders' equity to assets **10.3 %** 10.6 % 10.5 % Key common shareholders' equity to assets **9.1** 9.3 9.2 Tangible common equity to tangible assets (b) **7.7** 8.0 7.8 Common Equity Tier 1 (d) **11.2** 11.4 11.7 Tier 1 risk-based capital (d) **12.8** 13.0 13.4 Total risk-based capital (d) **14.8** 15.2 15.7 Leverage (d) **10.3** 10.5 10.3 **Asset quality — from continuing operations** Net loan charge-offs **$ 115** $ 101 $ 102 Net loan charge-offs to average loans **0.42 %** 0.38 % 0.39 % Allowance for loan and lease losses **$ 1,445** $ 1,449 $ 1,446 Allowance for credit losses **1,722** 1,745 1,743 Allowance for loan and lease losses to period-end loans **1.31 %** 1.33 % 1.36 % Allowance for credit losses to period-end loans **1.56** 1.60 1.64 Allowance for loan and lease losses to nonperforming loans **179** 212 208 Allowance for credit losses to nonperforming loans **213** 256 250 Nonperforming loans at period-end **$ 809** $ 682 $ 696 Nonperforming assets at period-end **818** 692 707 Nonperforming loans to period-end portfolio loans **0.73 %** 0.62 % 0.65 % Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets **0.74** 0.63 0.66 **Trust assets** Assets under management **$ 74,204** $ 69,756 $ 64,244 **Other data** Average full-time equivalent employees **17,517** 17,469 17,105 Branches **939** 940 943 Taxable-equivalent adjustment **$ 8** $ 8 $ 9 (a) Earnings per share may not foot due to rounding. (b) The table entitled "GAAP to Non-GAAP Reconciliations" starting on page 15 of this supplement 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, 2026, ratio is estimated. **Financial Highlights (continued)** (Dollars in millions, except per share amounts) **Six months ended** **6/30/2026** **6/30/2025** **Summary of operations** Net interest income (TE) **$ 2,488** $ 2,255 Noninterest income **1,429** 1,358 Total revenue (TE) **3,917** 3,613 Provision for credit losses **198** 256 Noninterest expense **2,398** 2,285 Income (loss) from continuing operations attributable to Key **1,030** 829 Income (loss) from discontinued operations, net of taxes **1** 1 Net income (loss) attributable to Key **1,031** 830 Income (loss) from continuing operations attributable to Key common shareholders **958** 757 Income (loss) from discontinued operations, net of taxes **1** 1 Net income (loss) attributable to Key common shareholders **959** 758 **Per common share** Income (loss) from continuing operations attributable to Key common shareholders **$ 0.89** $ 0.69 Income (loss) from discontinued operations, net of taxes **—** — Net income (loss) attributable to Key common shareholders (a) **0.89** 0.69 Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution **0.88** 0.69 Income (loss) from discontinued operations, net of taxes — assuming dilution **—** — Net income (loss) attributable to Key common shareholders — assuming dilution (a) **0.88** 0.69 Cash dividends paid **0.41** 0.41 **Performance ratios** From continuing operations: Return on average total assets **1.11 %** 0.90 % Return on average common equity **10.93** 9.28 Return on average tangible common equity (b) **12.96** 11.16 Net interest margin (TE) **2.88** 2.62 Cash efficiency ratio (b) **61.1** 63.0 From consolidated operations: Return on average total assets **1.11 %** 0.90 % Return on average common equity **10.95** 9.29 Return on average tangible common equity (b) **12.97** 11.18 Net interest margin (TE) **2.88** 2.62 **Asset quality — from continuing operations** Net loan charge-offs **$ 216** $ 212 Net loan charge-offs to average total loans **0.40 %** 0.41 % **Other data** Average full-time equivalent employees **17,493** 17,047 Taxable-equivalent adjustment **16** 18 (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. **GAAP to Non-GAAP Reconciliations **(Dollars in millions) The table below presents certain non-GAAP financial measures defined and described below. 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. Adjusted return on average tangible common equity excludes significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods. The table also shows the computation for pre-provision net revenue and adjusted pre-provision net revenue, which are 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. Further, management believes that adjusting pre-provision net revenue for significant or unusual items that management does not consider indicative of ongoing financial performance provides a greater understanding of ongoing operations and enhances comparability of results with prior periods. 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 provides 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. The adjusted cash efficiency ratio excludes significant or unusual items that management does not consider indicative of ongoing financial performance Adjusted taxable-equivalent revenue or adjusted revenue is a non-GAAP measure in that it adjusts revenue for certain tax-exempt instruments and selected items. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable instruments. Additionally, management believes adjusting for the selected items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the financial impacts related to those selected items. Adjusted noninterest income and adjusted noninterest expense are non-GAAP measures in that they exclude significant or unusual items that management does not consider indicative of ongoing financial performance. Management believes these measures provides a greater understanding of ongoing operations and enhances comparability of results with prior periods. Adjusted income (loss) available from continuing operations attributable to Key common shareholders (or "adjusted net income") and diluted earnings per share - adjusted (or "adjusted earnings per share") are non-GAAP in that these measures exclude significant or unusual items, net of tax, that management does not consider indicative of ongoing financial performance . Management believes these measures provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods. Adjusted operating leverage and fee-based adjusted operating leverage are non-GAAP performance measures that utilize revenue on a tax-equivalent basis and adjust revenue and expense for significant and unusual items. Management utilizes these measurements in analyzing performance and believes that adjusting for significant and unusual items provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods. Marked CET1 ratio is a non-GAAP measure and is calculated based on Common Equity Tier 1 capital, inclusive of the AOCI impact from securities and pension. The marked CET1 ratio differs from the defined CET1 regulatory capital ratio by including the impact of AFS and pension accumulated other comprehensive income (loss) (AOCI) amounts in the calculation of the capital ratio. These ratios are not defined in GAAP or federal banking regulations. As a result, these non-regulatory capital ratios disclosed may be considered non-GAAP financial measures. Management believes this measure provides useful information in light of the potential for change in the regulatory capital framework. 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** **6/30/2026** **3/31/2026** **6/30/2025** **6/30/2026** **6/30/2025** **Net interest income (GAAP)** **$ 1,250** $ 1,222 $ 1,141 $ 2,472 $ 2,237 Add: Taxable-equivalent adjustment **8** 8 9 16 18 Net interest income TE (non-GAAP) (A) **$ 1,258** $ 1,230 $ 1,150 $ 2,488 $ 2,255 **Net income (loss) attributable to Key common shareholders (GAAP) (B)** **$ 473** $ 486 $ 389 $ 959 $ 758 **Average Key shareholders' equity (GAAP)** **$ 19,947** $ 20,392 $ 19,268 $ 20,169 $ 18,952 Less: Average intangible assets **2,756** 2,758 2,772 2,757 2,774 Average preferred stock **2,500** 2,500 2,500 2,500 2,500 Average tangible common equity (non-GAAP) (C) **$ 14,691** $ 15,134 $ 13,996 $ 14,912 $ 13,678 **Key shareholders' equity (GAAP)** **$ 19,798** $ 19,987 $ 19,484 Less: Intangible assets **2,755** 2,757 2,770 Preferred stock (a) **2,446** 2,446 2,446 Tangible common equity (non-GAAP) (D) **$ 14,597** $ 14,784 $ 14,268 **Total assets (GAAP)** **$ 191,317** $ 188,663 $ 185,499 Less: Intangible assets **2,755** 2,757 2,770 Tangible assets (non-GAAP) (E) **$ 188,562** $ 185,906 $ 182,729 Tangible common equity to tangible assets ratio (non-GAAP) (D/E) **7.74 %** 7.95 % 7.81 % Return on average tangible common equity consolidated (non-GAAP) (B/C) **12.91 %** 13.02 % 11.15 % 12.97 % 11.18 % **Common equity tier 1 (F)** **$ 17,016** $ 17,038 $ 16,775 Add: AFS and Pension AOCI (loss) **(2,154)** (2,152) (2,476) Marked common equity tier 1 (non-GAAP) (G) (b) **$ 14,862** $ 14,886 $ 14,299 **Risk-weighted assets (H)** **(c)** **$ 152,317** $ 149,338 $ 143,427 Common equity tier 1 ratio (F/H) (c) **11.2 %** 11.4 % 11.7 % Marked CET1 ratio (non-GAAP) (G/H) (b)(c) **9.8** 10.0 10.0 **GAAP to Non-GAAP Reconciliations (continued)** (Dollars in millions) **Three months ended** **Six months ended** **6/30/2026** **3/31/2026** **6/30/2025** **6/30/2026** **6/30/2025** **Income (loss) from continuing operations attributable to Key common shareholders (GAAP) (I)** **$ 472** $ 486 $ 387 **$ 958** $ 757 Plus: Selected items (net of tax) (d) **—** — — **—** — Net income (loss) from continuing operations attributable to Key common shareholders, excluding selected items (non-GAAP) (J) **$ 472** $ 486 $ 387 **$ 958** $ 757 Return on average tangible common equity from continuing operations (non-GAAP) (I/C) **12.89 %** 13.02 % 11.09 % **12.96 %** 11.16 % Adjusted return on average tangible common equity from continuing operations excluding selected items (non-GAAP) (J/C) **12.89** 13.02 11.09 **12.96** 11.16 **Noninterest income (GAAP) (K)** **$ 706** $ 723 $ 690 **$ 1,429** $ 1,358 Plus: Selected items (d) **—** — — **—** — Adjusted noninterest income (non-GAAP) (L) **$ 706** $ 723 $ 690 **$ 1,429** $ 1,358 **Noninterest expense (GAAP) (M)** **$ 1,217** $ 1,181 $ 1,154 **$ 2,398** $ 2,285 Less: Intangible asset amortization **2** 2 5 **4** 10 Noninterest expense less intangible asset amortization (non-GAAP) (N) **$ 1,215** $ 1,179 $ 1,149 **$ 2,394** $ 2,275 Plus: Selected items (d) (O) **—** — — **—** — Adjusted noninterest expense less intangible asset amortization (non-GAAP) (P) **$ 1,215** $ 1,179 $ 1,149 **$ 2,394** $ 2,275 Adjusted noninterest expense (non-GAAP) (M+O) **$ 1,217** $ 1,181 $ 1,154 **$ 2,398** $ 2,285 Total taxable-equivalent revenue (non-GAAP) (A+K) = (Q) **$ 1,964** $ 1,953 $ 1,840 **$ 3,917** $ 3,613 Total adjusted taxable-equivalent revenue (non-GAAP) (A+L) **1,964** 1,953 1,840 **3,917** 3,613 Cash efficiency ratio (non-GAAP) (N/Q) **61.86 %** 60.37 % 62.45 % **61.12 %** 62.97 % Adjusted cash efficiency ratio (non-GAAP) (P/Q) **61.86** 60.37 62.45 **61.12** 62.97 **Pre-provision net revenue from continuing operations (non-GAAP) (A+K-M)** **$ 747** $ 772 $ 686 **$ 1,519** $ 1,328 Plus: Selected items (d) **—** — — **—** — Adjusted pre-provison net revenue from continuing operations (non-GAAP) **$ 747** $ 772 $ 686 **$ 1,519** $ 1,328 **Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)** **$ 0.44** $ 0.44 $ 0.35 **$ 0.88** $ 0.69 Plus: EPS impact of selected items (d) **—** — — **—** — Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP) (e) **$ 0.44** $ 0.44 $ 0.35 **$ 0.88** $ 0.69 **Adjusted operating leverage and fee based adjusted operating leverage** Adjusted noninterest income YoY Growth (R) **2.32 %** 8.23 % 10.05 % **76.64 %** (36.50) % Adjusted taxable-equivalent revenue YoY Growth (S) **6.74** 10.15 20.58 **8.41** 18.11 Adjusted noninterest expense YoY Growth (T) **5.46** 4.42 44.79 **4.95** 4.43 Adjusted operating leverage (S - T) **1.28** 5.73 (24.22) **3.47** 13.68 Adjusted fee-based operating leverage (R - T) **(3.14)** 3.81 (34.75) **71.69** (40.93) (a) Net of capital surplus. (b) Under the current applicable regulatory capital rules, Key has made the AOCI opt out election, which enables us to exclude components of AOCI from regulatory capital, notably the AOCI relative to securities and pension. (c) Amounts and ratios as of June 30, 2026 are estimated. (d) Additional detail provided in Selected Items table on page 24. (e) Earnings per share may not foot due to rounding. GAAP = U.S. generally accepted accounting principles; TE = Taxable Equivalent **Consolidated Balance Sheets** (Dollars in millions) **6/30/2026** **3/31/2026** **6/30/2025** **Assets** Loans **$ 110,430** $ 109,190 $ 106,389 Loans held for sale **1,198** 876 530 Securities available for sale **38,459** 38,918 40,669 Held-to-maturity securities **9,515** 9,116 6,914 Trading account assets **936** 783 1,374 Short-term investments **12,416** 11,782 11,564 Other investments **1,230** 1,204 1,058 Total earning assets **174,184** 171,869 168,498 Allowance for loan and lease losses **(1,445)** (1,449) (1,446) Cash and due from banks **1,711** 1,130 1,766 Premises and equipment **620** 618 599 Goodwill **2,752** 2,752 2,752 Other intangible assets **3** 5 18 Corporate-owned life insurance **4,456** 4,439 4,423 Accrued income and other assets **8,848** 9,100 8,654 Discontinued assets **188** 199 235 **Total assets** **$ 191,317** $ 188,663 $ 185,499 **Liabilities** Deposits in domestic offices: Interest-bearing deposits **$ 122,196** $ 120,220 $ 119,230 Noninterest-bearing deposits **30,893** 27,595 27,675 Total deposits **153,089** 147,815 146,905 Federal funds purchased and securities sold under repurchase agreements **5** 34 20 Bank notes and other short-term borrowings **3,680** 6,149 2,754 Accrued expense and other liabilities **3,778** 3,801 4,273 Long-term debt **10,967** 10,877 12,063 **Total liabilities** **171,519** 168,676 166,015 **Equity** Preferred stock **2,500** 2,500 2,500 Common shares **1,257** 1,257 1,257 Capital surplus **6,014** 5,981 5,971 Retained earnings **15,873** 15,622 14,886 Treasury stock, at cost **(3,492)** (3,152) (2,629) Accumulated other comprehensive income (loss) **(2,354)** (2,221) (2,501) Key shareholders' equity **19,798** 19,987 19,484 **Total liabilities and equity** **$ 191,317** $ 188,663 $ 185,499 Common shares outstanding (000) **1,072,035** 1,087,293 1,112,453 **Consolidated Statements of Income** (Dollars in millions, except per share amounts) **Three months ended** **Six months ended** **6/30/2026** **3/31/2026** **6/30/2025** **6/30/2026** **6/30/2025** **Interest income** Loans **$ 1,463** $ 1,416 $ 1,443 **$ 2,879** $ 2,844 Loans held for sale **15** 14 11 **29** 25 Securities available for sale **367** 370 411 **737** 803 Held-to-maturity securities **95** 86 61 **181** 124 Trading account assets **10** 11 16 **21** 33 Short-term investments **101** 103 157 **204** 331 Other investments **8** 5 8 **13** 17 Total interest income **2,059** 2,005 2,107 **4,064** 4,177 **Interest expense** Deposits **600** 598 730 **1,198** 1,483 Federal funds purchased and securities sold under repurchase agreements **19** 14 4 **33** 5 Bank notes and other short-term borrowings **35** 20 34 **55** 61 Long-term debt **155** 151 198 **306** 391 Total interest expense **809** 783 966 **1,592** 1,940 Net interest income **1,250** 1,222 1,141 **2,472** 2,237 Provision for credit losses **92** 106 138 **198** 256 Net interest income after provision for credit losses **1,158** 1,116 1,003 **2,274** 1,981 **Noninterest income** Trust and investment services income **159** 157 146 **316** 285 Investment banking and debt placement fees **169** 197 178 **366** 353 Cards and payments income **94** 86 85 **180** 167 Service charges on deposit accounts **77** 77 73 **154** 142 Corporate services income **80** 71 76 **151** 141 Commercial mortgage servicing fees **49** 62 70 **111** 146 Corporate-owned life insurance income **33** 34 32 **67** 65 Consumer mortgage income **17** 13 15 **30** 28 Operating lease income and other leasing gains **10** 8 14 **18** 23 Other income **15** 18 1 **33** 8 Net securities gains (losses) **3** — — **3** — Total noninterest income **706** 723 690 1,429 1,358 **Noninterest expense** Personnel **786** 743 705 **1,529** 1,385 Net occupancy **68** 68 69 **136** 136 Computer processing **108** 111 107 **219** 214 Business services and professional fees **46** 36 48 **82** 88 Equipment **22** 19 21 **41** 41 Operating lease expense **7** 7 10 **14** 21 Marketing **22** 18 24 **40** 45 Other expense **158** 179 170 **337** 355 Total noninterest expense **1,217** 1,181 1,154 **2,398** 2,285 Income (loss) from continuing operations before income taxes **647** 658 539 **1,305** 1,054 Income taxes (benefit) **139** 136 116 **275** 225 Income (loss) from continuing operations **508** 522 423 **1,030** 829 Income (loss) from discontinued operations, net of taxes **1** — 2 **1** 1 Net income (loss) **$ 509** $ 522 $ 425 **$ 1,031** $ 830 Income (loss) from continuing operations attributable to Key common shareholders **$ 472** $ 486 $ 387 **$ 958** $ 757 Net income (loss) attributable to Key common shareholders **473** 486 389 **959** 758 **Per common share** Income (loss) from continuing operations attributable to Key common shareholders **$ 0.44** $ 0.45 $ 0.35 **$ 0.89** $ 0.69 Income (loss) from discontinued operations, net of taxes **—** — — **—** — Net income (loss) attributable to Key common shareholders (a) **0.44** 0.45 0.35 **0.89** 0.69 **Per common share — assuming dilution** Income (loss) from continuing operations attributable to Key common shareholders **$ 0.44** $ 0.44 $ 0.35 **$ 0.88** $ 0.69 Income (loss) from discontinued operations, net of taxes **—** — — **—** — Net income (loss) attributable to Key common shareholders (a) **0.44** 0.44 0.35 **0.88** 0.69 Cash dividends declared per common share **$ 0.205** $ 0.205 $ 0.205 **$ 0.410** $ 0.410 Weighted-average common shares outstanding (000) **1,071,229** 1,084,277 1,100,033 **1,077,977** 1,098,453 Effect of common share options and other stock awards(b) **8,779** 10,091 7,177 **9,435** 8,331 Weighted-average common shares and potential common shares outstanding (000) (c) **1,080,008** 1,094,368 1,107,210 **1,087,412** 1,106,784 (a) Earnings per share may not foot due to rounding. (b) For periods ended in a loss from continuing operations attributable to Key common shareholders, anti-dilutive instruments have been excluded from the calculation of diluted earnings per share. (c) 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 2026** **First Quarter 2026** **Second Quarter 2025** **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) **$ 62,134** **$ 896** **5.78 %** $ 59,149 $ 843 5.76 % $ 55,604 $ 838 6.04 % Real estate — commercial mortgage **13,911** **197** **5.68** 13,902 198 5.76 13,311 200 6.02 Real estate — construction **2,816** **46** **6.53** 2,803 45 6.50 2,873 50 6.95 Commercial lease financing **2,117** **20** **3.77** 2,213 21 3.81 2,524 22 3.59 Total commercial loans **80,978** **1,159** **5.73** 78,067 1,107 5.73 74,312 1,110 5.99 Real estate — residential mortgage **18,305** **153** **3.35** 18,593 155 3.34 19,446 162 3.34 Home equity loans **5,470** **73** **5.33** 5,609 74 5.35 6,091 86 5.63 Other consumer loans **4,410** **57** **5.18** 4,558 58 5.16 4,946 63 5.09 Credit cards **909** **29** **12.67** 910 30 13.24 920 31 13.44 Total consumer loans **29,094** **312** **4.29** 29,670 317 4.30 31,403 342 4.36 Total loans **110,072** **1,471** **5.35** 107,737 1,424 5.35 105,715 1,452 5.51 Loans held for sale **1,085** **15** **5.68** 1,092 14 4.99 770 11 5.72 Securities available for sale (b), (e) **38,518** **367** **3.58** 39,403 370 3.59 40,714 411 3.76 Held-to-maturity securities (b) **9,425** **95** **4.05** 8,795 86 3.91 7,038 61 3.46 Trading account assets **797** **10** **5.30** 865 11 4.96 1,259 16 5.32 Short-term investments **10,705** **101** **3.79** 11,134 103 3.74 13,489 157 4.67 Other investments (e) **1,214** **8** **2.66** 1,075 5 1.97 1,015 8 3.41 Total earning assets **171,816** **2,067** **4.75** 170,101 2,013 4.71 170,000 2,116 4.90 Allowance for loan and lease losses **(1,442)** (1,419) (1,424) Accrued income and other assets **17,926** 17,567 18,224 Discontinued assets **192** 204 239 **Total assets** **$ 188,492** $ 186,453 $ 187,039 **Liabilities** Money market deposits **$ 42,843** **$ 225** **2.11 %** $ 42,732 $ 223 2.12 % $ 42,586 $ 276 2.60 % Demand deposits **61,013** **280** **1.84** 61,478 279 1.84 57,155 309 2.17 Savings deposits **4,406** **1** **0.04** 4,378 1 0.04 4,631 1 0.06 Time deposits **11,749** **94** **3.21** 11,777 95 3.26 15,601 144 3.70 Total interest-bearing deposits **120,011** **600** **2.01** 120,365 598 2.01 119,973 730 2.44 Federal funds purchased and securities sold under repurchase agreements **2,002** **19** **3.71** 1,539 14 3.69 415 4 4.28 Bank notes and other short-term borrowings **4,179** **35** **3.33** 2,585 20 3.20 3,288 34 4.27 Long-term debt (f) **10,694** **155** **5.84** 10,186 151 5.96 12,088 198 6.55 Total interest-bearing liabilities **136,886** **809** **2.37** 134,675 783 2.35 135,764 966 2.86 Noninterest-bearing deposits **27,566** 26,934 27,473 Accrued expense and other liabilities **3,901** 4,248 4,295 Discontinued liabilities (f) **192** 204 239 **Total liabilities** **$ 168,545** $ 166,061 $ 167,771 **Equity** **Total equity** **$ 19,947** $ 20,392 $ 19,268 **Total liabilities and equity** **$ 188,492** $ 186,453 $ 187,039 Interest rate spread (TE) **2.38 %** 2.36 % 2.04 % Net interest income (TE) and net interest margin (TE) **$ 1,258** **2.89 %** $ 1,230 2.87 % $ 1,150 2.66 % TE adjustment (b) **8** 8 9 Net interest income, GAAP basis **$ 1,250** $ 1,222 $ 1,141 (a) Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) 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, 2026, March 31, 2026, and June 30, 2025. (c) For purposes of these computations, nonaccrual loans are included in average loan balances. (d) Commercial and industrial average balances include $209 million, $205 million, and $218 million of assets from commercial credit cards for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. (e) Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $41.0 billion, $41.5 billion, and $43.8 billion for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Yield based on the fair value of securities available for sale was 3.81%, 3.75%, and 4.03% for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. (f) A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key's matched funds transfer pricing methodology to discontinued operations. TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles. **Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates** **From Continuing Operations** (Dollars in millions) **Six months ended June 30, 2026** **Six months ended June 30, 2025** **Average** **Yield/** **Average** **Yield/** **Balance** **Interest (a)** **Rate (a)** **Balance** **Interest (a)** **Rate (a)** **Assets** Loans: (b), (c) Commercial and industrial (d) **$ 60,650** **$ 1,739** **5.77 %** $ 54,680 $ 1,638 6.04 % Real estate — commercial mortgage **13,906** **395** **5.72** 13,187 392 5.99 Real estate — construction **2,810** **91** **6.52** 2,889 99 6.91 Commercial lease financing **2,165** **41** **3.79** 2,588 46 3.55 Total commercial loans **79,531** **2,266** **5.73** 73,344 2,175 5.98 Real estate — residential mortgage **18,448** **308** **3.35** 19,591 327 3.34 Home equity loans **5,539** **147** **5.34** 6,169 172 5.62 Other consumer loans **4,483** **115** **5.17** 5,016 126 5.05 Credit cards **910** **59** **12.95** 919 62 13.74 Total consumer loans **29,380** **629** **4.30** 31,695 687 4.35 Total loans **108,911** **2,895** **5.34** 105,039 2,862 5.49 Loans held for sale **1,088** **29** **5.33** 792 25 6.23 Securities available for sale (b), (e) **38,958** **737** **3.58** 40,021 803 3.73 Held-to-maturity securities (b) **9,112** **181** **3.98** 7,156 124 3.46 Trading account assets **831** **21** **5.13** 1,277 33 5.26 Short-term investments **10,918** **204** **3.77** 14,345 331 4.65 Other investments (e) **1,145** **13** **2.33** 975 17 3.57 Total earning assets **170,963** **4,080** **4.73** 169,605 4,195 4.88 Allowance for loan and lease losses **(1,431)** (1,413) Accrued income and other assets **17,748** 18,254 Discontinued assets **198** 246 **Total assets** **$ 187,478** $ 186,692 **Liabilities** Money market deposits **$ 42,788** **$ 448** **2.12 %** $ 42,298 $ 551 2.63 % Other demand deposits **61,244** **559** **1.84** 57,307 619 2.18 Savings deposits **4,392** **2** **0.04** 4,620 2 0.06 Time deposits **11,763** **189** **3.23** 16,110 311 3.90 Total interest-bearing deposits **120,187** **1,198** **2.01** 120,335 1,483 2.49 Federal funds purchased and securities sold under repurchase agreements **1,772** **33** **3.70** 258 5 4.22 Bank notes and other short-term borrowings **3,386** **55** **3.28** 2,784 61 4.47 Long-term debt (f) **10,442** **306** **5.90** 11,934 391 6.58 Total interest-bearing liabilities **135,787** **1,592** **2.36** 135,311 1,940 2.89 Noninterest-bearing deposits **27,251** 27,655 Accrued expense and other liabilities **4,073** 4,528 Discontinued liabilities (f) **198** 246 **Total liabilities** **$ 167,309** $ 167,740 **Equity** **Total equity** **$ 20,169** $ 18,952 **Total liabilities and equity** **$ 187,478** $ 186,692 Interest rate spread (TE) **2.37 %** 1.99 % Net interest income (TE) and net interest margin (TE) **$ 2,488** **2.88 %** $ 2,255 2.62 % TE adjustment (b) **16** 18 Net interest income, GAAP basis **$ 2,472** $ 2,237 (a) Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) 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, 2026, and June 30, 2025, respectively. (c) For purposes of these computations, nonaccrual loans are included in average loan balances. (d) Commercial and industrial average balances include $207 million and $216 million of assets from commercial credit cards for the six months ended June 30, 2026, and June 30, 2025, respectively. (e) Yield presented is calculated on the basis of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $41.3 billion and $43.2 billion for the six months ended June 30, 2026, and June 30, 2025, respectively. Yield based on the fair value of securities available for sale was 3.78% and 4.01% for the six months ended June 30, 2026, and June 30, 2025, respectively. (f) A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key's matched funds transfer pricing methodology to discontinued operations. TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles **Noninterest Expense** (Dollars in millions) **Three months ended** **Six months ended** **6/30/2026** **3/31/2026** **6/30/2025** **6/30/2026** **6/30/2025** Personnel (a) **$ 786** $ 743 $ 705 **$ 1,529** $ 1,385 Net occupancy **68** 68 69 **136** 136 Computer processing **108** 111 107 **219** 214 Business services and professional fees **46** 36 48 **82** 88 Equipment **22** 19 21 **41** 41 Operating lease expense **7** 7 10 **14** 21 Marketing **22** 18 24 **40** 45 Other expense **158** 179 170 **337** 355 Total noninterest expense **$ 1,217** $ 1,181 $ 1,154 **$ 2,398** $ 2,285 Average full-time equivalent employees (b) **17,517** 17,469 17,105 **17,493** 17,047 (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** (Dollars in millions) **Three months ended** **Six months ended** **6/30/2026** **3/31/2026** **6/30/2025** **6/30/2026** **6/30/2025** Salaries and contract labor **$ 448** $ 439 $ 427 **$ 887** $ 832 Incentive and stock-based compensation **194** 172 168 **366** 326 Employee benefits **140** 127 108 **267** 217 Severance **4** 5 2 **9** 10 Total personnel expense **$ 786** $ 743 $ 705 **$ 1,529** $ 1,385 **Loan Composition** (Dollars in millions) **Change 6/30/2026 vs.** **6/30/2026** **3/31/2026** **6/30/2025** **3/31/2026** **6/30/2025** Commercial and industrial (a) **$ 62,734** $ 60,651 $ 56,058 3.4 % 11.9 % Commercial real estate: Commercial mortgage **13,941** 14,144 13,862 (1.4) 0.6 Construction **2,896** 2,801 2,830 3.4 2.3 Total commercial real estate loans **16,837** 16,945 16,692 (0.6) 0.9 Commercial lease financing **1,997** 2,200 2,472 (9.2) (19.2) Total commercial loans **81,568** 79,796 75,222 2.2 8.4 Real estate — residential mortgage **18,178** 18,483 19,330 (1.7) (6.0) Home equity loans **5,408** 5,528 6,023 (2.2) (10.2) Other consumer loans **4,349** 4,477 4,881 (2.9) (10.9) Credit cards **927** 906 933 2.3 (0.6) Total consumer loans **28,862** 29,394 31,167 (1.8) (7.4) Total loans (b), (c) **$ 110,430** $ 109,190 $ 106,389 1.1 % 3.8 % (a) Loan balances include $208 million, $207 million, and $220 million of commercial credit card balances at June 30, 2026, March 31, 2026, and June 30, 2025, respectively. (b) Total loans exclude loans of $182 million at June 30, 2026, $194 million at March 31, 2026, and $230 million at June 30, 2025, related to the discontinued operations of the education lending business. (c) Accrued interest of $453 million, $443 million, and $465 million at June 30, 2026, March 31, 2026, and June 30, 2025, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. **Loans Held for Sale Composition** (Dollars in millions) **Change 6/30/2026 vs.** **6/30/2026** **3/31/2026** **6/30/2025** **3/31/2026** **6/30/2025** Commercial and industrial **$ 559** $ 139 $ 158 302.2 % 253.8 % Real estate — commercial mortgage **435** 637 290 (31.7) 50.0 Real estate — residential mortgage **204** 100 82 104.0 148.8 Total loans held for sale **$ 1,198** $ 876 $ 530 36.8 % 126.0 % **Summary of Changes in Loans Held for Sale** (Dollars in millions) **2Q26** **1Q26** **4Q25** **3Q25** **2Q25** Balance at beginning of period **$ 876** $ 1,077 $ 998 $ 530 $ 811 New originations **2,099** 2,034 3,356 3,471 1,806 Transfers from (to) held to maturity, net **34** (13) (35) — (71) Loan sales **(1,721)** (2,201) (3,232) (2,956) (2,012) Loan draws (payments), net **(89)** (25) (10) (42) (1) Valuation and other adjustments **(1)** 4 — (5) (3) Balance at end of period **$ 1,198** $ 876 $ 1,077 $ 998 $ 530 **Summary of Loan and Lease Loss Experience From Continuing Operations** (Dollars in millions) **Three months ended** **Six months ended** **6/30/2026** **3/31/2026** **6/30/2025** **6/30/2026** **6/30/2025** Average loans outstanding **$ 110,072** $ 107,737 $ 105,715 **$ 108,911** $ 105,039 Allowance for loan and lease losses at the beginning of the period **$ 1,449** $ 1,427 $ 1,429 **$ 1,427** $ 1,409 Loans charged off: Commercial and industrial **84** 90 94 **174** 156 Real estate — commercial mortgage **20** 1 6 **21** 42 Real estate — construction **—** — — **—** — Total commercial real estate loans **20** 1 6 **21** 42 Commercial lease financing **1** — 2 **1** 2 Total commercial loans **105** 91 102 **196** 200 Real estate — residential mortgage **1** — — **1** 1 Home equity loans **—** 1 — **1** 1 Other consumer loans **14** 15 13 **29** 27 Credit cards **11** 10 12 **21** 24 Total consumer loans **26** 26 25 **52** 53 Total loans charged off **131** 117 127 **248** 253 Recoveries: Commercial and industrial **9** 10 19 **19** 29 Real estate — commercial mortgage **1** — 1 **1** 1 Real estate — construction **—** — — **—** — Total commercial real estate loans **1** — 1 **1** 1 Commercial lease financing **—** — — **—** — Total commercial loans **10** 10 20 **20** 30 Real estate — residential mortgage **1** 1 1 **2** 2 Home equity loans **—** 1 1 **1** 2 Other consumer loans **3** 2 2 **5** 4 Credit cards **2** 2 1 **4** 3 Total consumer loans **6** 6 5 **12** 11 Total recoveries **16** 16 25 **32** 41 Net loan charge-offs **(115)** (101) (102) **(216)** (212) Provision (credit) for loan and lease losses **111** 123 119 **234** 249 Allowance for loan and lease losses at end of period **$ 1,445** $ 1,449 $ 1,446 **$ 1,445** $ 1,446 Liability for credit losses on lending-related commitments at beginning of period **$ 296** $ 313 $ 278 **$ 313** $ 290 Provision (credit) for losses on lending-related commitments **(19)** (17) 19 **(36)** 7 Liability for credit losses on lending-related commitments at end of period (a) **$ 277** $ 296 $ 297 **$ 277** $ 297 Total allowance for credit losses at end of period **$ 1,722** $ 1,745 $ 1,743 **$ 1,722** $ 1,743 Net loan charge-offs to average total loans **0.42 %** 0.38 % 0.39 % **0.40 %** 0.41 % Allowance for loan and lease losses to period-end loans **1.31** 1.33 1.36 **1.31** 1.36 Allowance for credit losses to period-end loans **1.56** 1.60 1.64 **1.56** 1.64 Allowance for loan and lease losses to nonperforming loans **179** 212 208 **179** 208 Allowance for credit losses to nonperforming loans **213** 256 250 **213** 250 Discontinued operations — education lending business: Loans charged off **$ —** $ 1 $ 1 **$ 1** $ 1 Recoveries **—** — — **—** — Net loan charge-offs **$ —** $ (1) $ (1) **$ (1)** $ (1) (a) Included in "Accrued expense and other liabilities" on the balance sheet. **Asset Quality Statistics From Continuing Operations** (Dollars in millions) **2Q26** **1Q26** **4Q25** **3Q25** **2Q25** Net loan charge-offs **$ 115** $ 101 $ 104 $ 114 $ 102 Net loan charge-offs to average total loans **0.42 %** 0.38 % 0.39 % 0.42 % 0.39 % Allowance for loan and lease losses **$ 1,445** $ 1,449 $ 1,427 $ 1,444 $ 1,446 Allowance for credit losses (a) **1,722** 1,745 1,740 1,736 1,743 Allowance for loan and lease losses to period-end loans **1.31 %** 1.33 % 1.34 % 1.36 % 1.36 % Allowance for credit losses to period-end loans **1.56** 1.60 1.63 1.64 1.64 Allowance for loan and lease losses to nonperforming loans **179** 212 232 219 208 Allowance for credit losses to nonperforming loans **213** 256 283 264 250 Nonperforming loans at period end **$ 809** $ 682 $ 615 $ 658 $ 696 Nonperforming assets at period end **818** 692 627 668 707 Nonperforming loans to period-end portfolio loans **0.73 %** 0.62 % 0.58 % 0.62 % 0.65 % Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets **0.74** 0.63 0.59 0.63 0.66 (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) **6/30/2026** **3/31/2026** **12/31/2025** **9/30/2025** **6/30/2025** Commercial and industrial **$ 358** $ 284 $ 256 $ 253 $ 280 Real estate — commercial mortgage **256** 190 157 214 226 Real estate — construction **—** — — — — Total commercial real estate loans **256** 190 157 214 226 Commercial lease financing **6** 6 7 — — Total commercial loans **620** 480 420 467 506 Real estate — residential mortgage **100** 115 104 98 95 Home equity loans **79** 76 80 82 84 Other consumer loans **4** 4 4 4 4 Credit cards **6** 7 7 7 7 Total consumer loans **189** 202 195 191 190 Total nonperforming loans (a) **809** 682 615 658 696 OREO **9** 10 9 10 11 Nonperforming loans held for sale **—** — 3 — — Total nonperforming assets **$ 818** $ 692 $ 627 $ 668 $ 707 Accruing loans past due 90 days or more **$ 85** $ 153 $ 99 $ 110 $ 74 Accruing loans past due 30 through 89 days **138** 137 220 254 266 Nonperforming assets from discontinued operations — education lending business **1** 2 2 2 2 Nonperforming loans to period-end portfolio loans **0.73 %** 0.62 % 0.58 % 0.62 % 0.65 % Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets **0.74** 0.63 0.59 0.63 0.66 **Summary of Changes in Nonperforming Loans From Continuing Operations** (Dollars in millions) **2Q26** **1Q26** **4Q25** **3Q25** **2Q25** Balance at beginning of period **$ 682** $ 615 $ 658 $ 696 $ 686 Loans placed on nonaccrual status **365** 253 248 210 233 Charge-offs **(131)** (117) (124) (140) (127) Loans sold **(33)** (2) (7) (13) — Payments **(38)** (37) (124) (68) (74) Transfers to OREO **(1)** (1) (1) (1) (1) Loans returned to accrual status **(35)** (29) (35) (26) (21) Balance at end of period **$ 809** $ 682 $ 615 $ 658 $ 696 **Line of Business Results** (Dollars in millions) **Change 2Q26 vs.** **2Q26** **1Q26** **4Q25** **3Q25** **2Q25** **1Q26** **2Q25** **Consumer Bank** **Summary of operations** Total revenue (TE) **$ 1,010** $ 977 $ 998 $ 992 $ 966 3.4 % 4.6 % Provision for credit losses **26** 40 32 40 55 (35.0) (52.7) Noninterest expense **716** 708 734 693 693 1.1 3.3 Net income (loss) attributable to Key **203** 174 176 196 165 16.7 23.0 Average loans and leases **33,263** 33,997 34,683 35,363 36,138 (2.2) (8.0) Average deposits **87,399** 87,796 87,738 87,692 88,002 (0.5) (0.7) Net loan charge-offs **45** 40 49 49 40 12.5 12.5 Net loan charge-offs to average total loans **0.54 %** 0.48 % 0.56 % 0.55 % 0.44 % 12.5 22.7 Nonperforming assets at period end **$ 253** $ 270 $ 262 $ 266 $ 269 (6.3) (5.9) Return on average allocated equity **29.52 %** 24.90 % 24.24 % 26.03 % 21.91 % 18.6 34.7 **Commercial Bank** **Summary of operations** Total revenue (TE) **$ 1,108** $ 1,119 $ 1,194 $ 1114 $ 1074 (1.0) % 3.2 % Provision for credit losses **67** 70 73 68 84 (4.3) (20.2) Noninterest expense **503** 474 515 485 451 6.1 11.5 Net income (loss) attributable to Key **423** 452 472 440 423 (6.4) — Average loans and leases **76,238** 73,146 71,107 70,328 69,089 4.2 10.3 Average loans held for sale **936** 958 1,140 1,224 707 (2.3) 32.4 Average deposits **58,895** 58,929 60,485 58,523 55,927 (0.1) 5.3 Net loan charge-offs **71** 64 53 64 62 10.9 14.5 Net loan charge-offs to average total loans **0.37 %** 0.35 % 0.30 % 0.36 % 0.36 % 5.7 2.8 Nonperforming assets at period end **$ 565** $ 422 $ 365 $ 402 $ 438 33.9 29.0 Return on average allocated equity **16.40 %** 18.14 % 18.80 % 17.87 % 17.55 % (9.6) (6.6) **Selected Items Impact on Earnings** (Dollars in millions, except per share amounts) **Pretax****(a)** **After-tax at marginal rate****(a)** **Quarter to date results** **Amount** **Net Income** **EPS****(b), (d)** **Three months ended June 30, 2026** No items **$ —** **$ —** **$ —** **Three months ended March 31, 2026** No items **—** **—** **—** **Three Months Ended December 31, 2025** FDIC special assessment (other expense)(c) 21 16 0.01 **Three months ended September 30, 2025** FDIC special assessment (other expense)(c) 5 4 — **Three months ended June 30, 2025** No items — — — **Year to date results** **Six months ended June 30, 2026** No items **$ —** **$ —** **$ —** **Six months ended June 30, 2025** No items — — — (a) Favorable (unfavorable) impact. (b) Impact to EPS reflected on a fully diluted basis. (c) In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC's deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. Amounts reflected in this table represent adjustments from initial estimates based on quarterly invoices received from the FDIC. (d) Earnings per share may not foot due to rounding. 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