KEYCORP REPORTS FIRST QUARTER 2026 NET INCOME OF $486 MILLION, OR $0.44 PER DILUTED COMMON SHARE INCREASING 33% YEAR-OVER-YEAR

KEYCORP REPORTS FIRST QUARTER 2026 NET INCOME OF $486 MILLION, OR $0.44 PER DILUTED COMMON SHARE INCREASING 33% YEAR-OVER-YEAR Revenue of $1.95 billion, up 10% year-over-year, with noninterest income up 8%

Net interest income up 11% year-over-year and 1% quarter-over-quarter despite seasonality impact; net interest margin of 2.87% increased 5 bps sequentially

Period-end loans up $2.6 billion quarter-over-quarter, with commercial loans up $3.3 billion or 4%

Credit quality remains strong - nonperforming assets were 63 bps and net charge-offs were 38 bps

Common Equity Tier 1 ratio of 11.4% (a); repurchased $389 million of common shares during the quarter

CLEVELAND, April 16, 2026 /PRNewswire/ -- KeyCorp (NYSE: KEY) announced net income from continuing operations attributable to Key common shareholders of $486 million, or $0.44 per diluted common share, for the first quarter of 2026. For the fourth quarter of 2025, net income from continuing operations attributable to Key common shareholders was $474 million, or $0.43 per diluted common share, or adjusted net income of $458 million, or $0.41 per diluted common share. (b) The fourth quarter of 2025 included a $16 million after-tax benefit related to the updated FDIC special assessment. (c) For the first quarter of 2025, KeyCorp reported net income from continuing operations attributable to Key common shareholders of $370 million, or $0.33 per diluted common share.

Comments from Chairman and CEO, Chris Gorman

"Our strong first quarter performance demonstrates disciplined execution and significant momentum as we continue to deliver on our commitments. Revenue grew 10% year-over-year, growing at more than double the rate of expenses. We grew net interest income and net interest margin sequentially and year-over-year. Our priority fee-based businesses - investment banking, commercial payments, and wealth management - collectively grew 12% year-over-year. Return on tangible common equity exceeded 13%, reflecting significant progress toward achieving our goal of 15%+ return on tangible common equity by year-end 2027.

In addition to driving a greater return on capital, we remain committed to the return of capital. We repurchased almost $400 million of common shares in the first quarter. We are also encouraged by the recently updated Basel III proposal which, if implemented as currently proposed, would imply more than 100 basis point benefit to our marked CET1 ratio.

We are successfully navigating the dynamic macroeconomic environment and are prepared to manage through a broad range of potential scenarios. We are growing clients, loans, and pipelines. We continue to gain momentum in the marketplace, and are investing across the franchise in frontline bankers and technology that will drive additional organic growth and efficiency. We remain well positioned to drive strong revenue and earnings growth in 2026 through the continued delivery of our differentiated capabilities and exceptional service to our clients."

(a)

March 31, 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.

(c)

See table on page 22 of the 1Q26 Earnings Release for more information on Selected Items Impact on Earnings.

Selected Financial Highlights

Dollars in millions, except per share data

Change 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Income (loss) from continuing operations attributable to Key common shareholders

$ 486

$ 474

$ 370

2.5 %

31.4 %

Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution

0.44

0.43

0.33

2.3

33.3

Book value at period end

16.13

16.27

14.89

(0.9)

8.3

Return on average tangible common equity from continuing operations (a)

13.02 %

12.43 %

11.24 %

59 bps

178 bps

Return on average total assets from continuing operations

1.14

1.08

.88

Common Equity Tier 1 ratio (b)

11.4

11.8

11.6

(40)

(20)

Net interest margin (TE) from continuing operations

2.87

2.82

2.58

(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)

March 31, 2026 ratio is estimated.

TE = Taxable Equivalent

INCOME STATEMENT HIGHLIGHTS

Revenue

Dollars in millions

Change 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Net interest income (TE)

$ 1,230

$ 1,223

$ 1,105

0.6 %

11.3 %

Noninterest income

723

782

668

(7.5)

8.2

Total revenue (TE)

$ 1,953

$ 2,005

$ 1,773

(2.6) %

10.2 %

TE = Taxable Equivalent

Taxable-equivalent net interest income was $1.23 billion for the first quarter of 2026 and the net interest margin was 2.87%. Compared to the first quarter of 2025, net interest income increased by $125 million, and the net interest margin increased by 29 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 variable-rate earning assets.

Compared to the fourth quarter of 2025, taxable-equivalent net interest income increased by $7 million, and the net interest margin increased by 5 basis points. These increases reflect lower deposit costs 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 variable-rate earning assets, a decline in low-cost deposit balances from seasonal outflows, and two fewer days in the first quarter of 2026 compared to the fourth quarter of 2025.

Noninterest Income

Dollars in millions

Change 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Trust and investment services income

$ 157

$ 156

$ 139

0.6 %

12.9 %

Investment banking and debt placement fees

197

243

175

(18.9)

12.6

Cards and payments income

2.4

4.9

Service charges on deposit accounts

(1.3)

11.6

Corporate services income

(12.3)

9.2

Commercial mortgage servicing fees

(8.8)

(18.4)

Corporate-owned life insurance income

(15.0)

3.0

Consumer mortgage income

(18.8)

—

Operating lease income and other leasing gains

(11.1)

Other income

157.1

Total noninterest income

$ 723

$ 782

$ 668

(7.5) %

8.2 %

Compared to the first quarter of 2025, noninterest income increased by $55 million. The increase was primarily driven by a $22 million increase in investment banking and debt placement fees reflecting higher merger and acquisition advisory fees, commercial mortgage debt placement activity, and equity underwriting activity, as well as an $18 million increase in trust and investment services income. These were partially offset by a $14 million decrease in commercial mortgage servicing fees.

Compared to the fourth quarter of 2025, noninterest income decreased by $59 million. The decrease was driven by a $46 million decrease in investment banking and debt placement fees, a $10 million decrease in corporate services income, and a $6 million decrease in commercial mortgage servicing fees.

Noninterest Expense

Dollars in millions

Change 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Personnel expense

$ 743

$ 790

$ 680

(5.9) %

9.3 %

Net occupancy

(1.4)

1.5

Computer processing

111

106

107

4.7

3.7

Business services and professional fees

(41.0)

(10.0)

Equipment

(13.6)

(5.0)

Operating lease expense

(12.5)

(36.4)

Marketing

(35.7)

(14.3)

Other expense

179

157

185

14.0

(3.2)

Total noninterest expense

$ 1,181

$ 1,241

$ 1,131

(4.8) %

4.4 %

Compared to the first quarter of 2025, noninterest expense increased by $50 million. The increase was predominantly driven by a $63 million increase in personnel expense primarily related to continued investments in people, employee benefits, and incentive compensation associated with noninterest income growth.

Compared to the fourth quarter of 2025, noninterest expense decreased by $60 million. The decrease was predominantly driven by a $47 million decline in personnel expense, primarily related to incentive compensation. Business services and professional fees decreased by $25 million and marketing expense decreased by $10 million largely due to seasonality. These were partially offset by an increase in other expense related to a $21 million benefit associated with the updated FDIC special assessment in the prior quarter.

BALANCE SHEET HIGHLIGHTS

Average Loans

Dollars in millions

Change 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Commercial and industrial (a)

$ 59,149

$ 57,541

$ 53,746

2.8 %

10.1 %

Other commercial loans

18,918

18,497

18,619

2.3

1.6

Total consumer loans

29,670

30,278

31,989

(2.0)

(7.2)

Total loans

$ 107,737

$ 106,316

$ 104,354

1.3 %

3.2 %

(a)

Commercial and industrial average loan balances include $205 million, $211 million, and $213 million of assets from commercial credit cards at March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

Average loans were $107.7 billion for the first quarter of 2026, an increase of $3.4 billion compared to the first quarter of 2025. Average commercial loans increased by $5.7 billion, primarily driven by a $5.4 billion increase in commercial and industrial loans. Average consumer loans declined by $2.3 billion, reflective of broad-based declines across all consumer loan categories.

Compared to the fourth quarter of 2025, average loans increased by $1.4 billion. Average commercial loans increased $2.0 billion, primarily driven by an increase in commercial and industrial loans. Average consumer loans declined by $608 million, reflective of the intentional run-off of low-yielding loans.

Average Deposits

Dollars in millions

Change 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Non-time deposits

$ 135,522

$ 136,853

$ 131,917

(1.0) %

2.7 %

Time deposits

11,777

13,857

16,625

(15.0)

(29.2)

Total deposits

$ 147,299

$ 150,710

$ 148,542

(2.3) %

(0.8) %

Cost of total deposits

1.65 %

1.81 %

2.06 %

(16) bps

(41) bps

Average deposits totaled $147.3 billion for the first quarter of 2026, a decrease of $1.2 billion compared to the year-ago quarter, driven by the intentional runoff of brokered CDs.

Compared to the fourth quarter of 2025, average deposits decreased by $3.4 billion. The decline was driven by seasonally lower deposit balances, as well as the intentional runoff of brokered CDs. The rate paid on interest-bearing deposits declined by 22 basis points, and the overall cost of deposits declined by 16 basis points to 1.65%.

ASSET QUALITY

Dollars in millions

Change 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Net loan charge-offs

$ 101

$ 104

$ 110

(2.9) %

(8.2) %

Net loan charge-offs to average total loans

.38 %

.39 %

.43 %

(1) bps

(5) bps

Nonperforming loans at period end

$ 682

$ 615

$ 686

10.9 %

(0.6) %

Nonperforming loans to period-end portfolio loans

.62 %

.58 %

.65 %

4 bps

(3) bps

Nonperforming assets at period end

$ 692

$ 627

$ 700

10.4 %

(1.1) %

Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets

.63 %

.59 %

.67 %

4 bps

(4) bps

Allowance for loan and lease losses

$ 1,449

$ 1,427

$ 1,429

1.5 %

1.4 %

Allowance for credit losses

1,745

1,740

1,707

0.3 %

2.2 %

Allowance for credit losses to period-end loans

1.60 %

1.63 %

(3) bps

Provision for credit losses

$ 106

$ 108

$ 118

(1.9) %

(10.2) %

Allowance for loan and lease losses to nonperforming loans

212 %

232 %

208 %

N/M

Allowance for credit losses to nonperforming loans

256

283

249

N/M

N/M = Not Meaningful

Net loan charge-offs for the first quarter of 2026 totaled $101 million, or 0.38% of average total loans. These results compare to $110 million, or 0.43%, for the first quarter of 2025 and $104 million, or 0.39%, for the fourth quarter of 2025.

Key's allowance for credit losses was $1.7 billion, or 1.60% of total period-end loans at March 31, 2026, compared to 1.63% at March 31, 2025, and 1.63% at December 31, 2025. A reserve build of $5 million during the first quarter of 2026 was driven by increases in qualitative reserves due to elevated economic uncertainty, partially offset by continued improvement in the portfolio mix.

At March 31, 2026, Key's nonperforming loans totaled $682 million, which represented 0.62% of period-end portfolio loans. These results compare to 0.65% at March 31, 2025, and 0.58% at December 31, 2025. Nonperforming assets at March 31, 2026, totaled $692 million, and represented 0.63% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.67% at March 31, 2025, and 0.59% at December 31, 2025.

CAPITAL

Key's estimated risk-based capital ratios, included in the following table, continued to exceed all "well-capitalized" regulatory benchmarks at March 31, 2026.

Capital Ratios

3/31/2026

12/31/2025

3/31/2025

Common Equity Tier 1 (a)

11.4 %

11.8 %

11.6 %

Tier 1 risk-based capital (a)

13.0

13.5

13.3

Total risk-based capital (a)

15.2

15.7

Tangible common equity to tangible assets (b)

8.0

8.4

7.4

Leverage (a)

10.5

10.2

(a)

March 31, 2026 ratio is estimated.

(b)

Key's regulatory capital position remained strong in the first quarter of 2026. As shown in the preceding table, at March 31, 2026, Key's estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 11.4% and 13.0%, respectively.

Summary of Changes in Common Shares Outstanding

In thousands

Change 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Shares outstanding at beginning of period

1,102,401

1,112,952

1,106,786

(0.9) %

(0.4) %

Share repurchases

(17,969)

(11,109)

—

61.8

N/M

Shares issued under employee compensation plans (net of cancellations and returns)

2,861

558

5,200

N/M

(45.0)

Shares outstanding at end of period

1,087,293

1,102,401

1,111,986

(1.4) %

(2.2) %

N/M = Not Meaningful

During the first quarter of 2026, Key declared a dividend of $.205 per common share. The reduction in share count was driven by $389 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 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Revenue from continuing operations (TE)

Consumer Bank

$ 978

$ 998

$ 932

(2.0) %

4.9 %

Commercial Bank

1,117

1,194

1,047

(6.4)

6.7

Other (a)

(142)

(187)

(206)

24.1

31.1

Total

$ 1,953

$ 2,005

$ 1,773

(2.6) %

10.2 %

Income (loss) from continuing operations attributable to Key

Consumer Bank

$ 173

$ 176

$ 163

(1.7) %

6.1 %

Commercial Bank

451

472

399

(4.4)

13.0

Other (a)

(102)

(139)

(156)

26.6

34.6

Total

$ 522

$ 509

$ 406

2.6 %

28.6 %

(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 difference. 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 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Summary of operations

Net interest income (TE)

$ 738

$ 747

$ 706

(1.2) %

4.5 %

Noninterest income

240

251

226

(4.4)

6.2

Total revenue (TE)

978

998

932

(2.0)

4.9

Provision for credit losses

25.0

(7.0)

Noninterest expense

709

734

675

(3.4)

5.0

Income (loss) before income taxes (TE)

229

232

214

(1.3)

7.0

Allocated income taxes (benefit) and TE adjustments

—

9.8

Net income (loss) attributable to Key

$ 173

$ 176

$ 163

(1.7) %

6.1 %

Average balances

Loans and leases

$ 34,005

$ 34,683

$ 36,819

(2.0) %

(7.6) %

Total assets

37,341

37,731

39,806

(1.0)

(6.2)

Deposits

87,796

87,738

88,306

0.1

(0.6)

Assets under management at period end

$ 69,756

$ 69,964

$ 61,053

(0.3) %

14.3 %

TE = Taxable Equivalent

Additional Consumer Bank Data

Dollars in millions

Change 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Noninterest income

Trust and investment services income

$ 130

$ 128

$ 113

1.6 %

15.0 %

Service charges on deposit accounts

(10.5)

3.0

Cards and payments income

(8.3)

(3.5)

Consumer mortgage income

(18.8)

—

Other noninterest income

(11.1)

(20.0)

Total noninterest income

$ 240

$ 251

$ 226

(4.4) %

6.2 %

Average deposit balances

Money market deposits

$ 35,920

$ 35,390

$ 33,533

1.5 %

7.1 %

Demand deposits

23,214

22,879

22,772

1.5

1.9

Savings deposits

4,199

4,177

4,392

0.5

(4.4)

Time deposits

10,610

11,059

13,318

(4.1)

(20.3)

Noninterest-bearing deposits

13,853

14,233

14,291

(2.7)

(3.1)

Total deposits

$ 87,796

$ 87,738

$ 88,306

0.1 %

(0.6) %

Other data

Branches

940

945

Automated teller machines

1,112

1,120

1,176

Consumer Bank Summary of Operations (1Q26 vs. 1Q25)

Commercial Bank

Dollars in millions

Change 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Summary of operations

Net interest income (TE)

$ 672

$ 696

$ 636

(3.4) %

5.7 %

Noninterest income

445

498

411

(10.6)

8.3

Total revenue (TE)

1,117

1,194

1047

(6.4)

6.7

Provision for credit losses

(4.1)

(6.7)

Noninterest expense

474

515

464

(8.0)

2.2

Income (loss) before income taxes (TE)

573

606

508

(5.4)

12.8

Allocated income taxes and TE adjustments

122

134

109

(9.0)

11.9

Net income (loss) attributable to Key

$ 451

$ 472

$ 399

(4.4) %

13.0 %

Average balances

Loans and leases

$ 73,146

$ 71,107

$ 67,058

2.9 %

9.1 %

Loans held for sale

958

1,140

754

(16.0)

27.1

Total assets

82,585

80,689

76,946

2.3

7.3

Deposits

58,929

60,485

57,481

(2.6)

2.5

TE = Taxable Equivalent

Additional Commercial Bank Data

Dollars in millions

Change 1Q26 vs.

1Q26

4Q25

1Q25

4Q25

1Q25

Noninterest income

Trust and investment services income

$ 27

$ 28

$ 27

(3.6) %

—

Investment banking and debt placement fees

198

244

175

(18.9)

13.1 %

Cards and payments income

22.7

28.6

Service charges on deposit accounts

7.5

19.4

Corporate services income

(11.4)

9.4

Commercial mortgage servicing fees

(7.5)

(18.4)

Operating lease income and other leasing gains

(11.1)

—

Other noninterest income

11.1

150.0

Total noninterest income

$ 445

$ 498

$ 411

(10.6) %

8.3 %

Commercial Bank Summary of Operations (1Q26 vs. 1Q25)

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 $189 billion at March 31, 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 10:00 a.m. ET, on April 16, 2026. A replay of the call will be available on our website through April 16, 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

First Quarter 2026

Financial Supplement

Page

Basis of Presentation

Financial Highlights

GAAP to Non-GAAP Reconciliation

Consolidated Balance Sheets

Consolidated Statements of Income

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations

Noninterest Expense

Personnel Expense

Loan Composition

Loans Held for Sale Composition

Summary of Changes in Loans Held for Sale

Summary of Loan and Lease Loss Experience From Continuing Operations

Asset Quality Statistics From Continuing Operations

Summary of Nonperforming Assets and Past Due Loans From Continuing Operations

Summary of Changes in Nonperforming Loans From Continuing Operations

Line of Business Results

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

3/31/2026

12/31/2025

3/31/2025

Summary of operations

Net interest income (TE)

$ 1,230

$ 1,223

$ 1,105

Noninterest income

723

782

668

Total revenue (TE)

1,953

2,005

1,773

Provision for credit losses

106

108

118

Noninterest expense

1,181

1,241

1,131

Income (loss) from continuing operations attributable to Key

522

509

406

Income (loss) from discontinued operations, net of taxes

—

(1)

Net income (loss) attributable to Key

522

510

405

Income (loss) from continuing operations attributable to Key common shareholders

486

474

370

Income (loss) from discontinued operations, net of taxes

—

(1)

Net income (loss) attributable to Key common shareholders

486

475

369

Per common share

Income (loss) from continuing operations attributable to Key common shareholders

$ 0.45

$ 0.43

$ 0.34

Income (loss) from discontinued operations, net of taxes

—

Net income (loss) attributable to Key common shareholders (a)

0.45

0.43

0.34

Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution

0.44

0.43

0.33

Income (loss) from discontinued operations, net of taxes — assuming dilution

—

Net income (loss) attributable to Key common shareholders — assuming dilution (a)

0.44

0.43

0.33

Cash dividends declared

0.205

Book value at period end

16.13

16.27

14.89

Tangible book value at period end

13.60

13.77

12.40

Market price at period end

20.05

20.64

15.99

Performance ratios

From continuing operations:

Return on average total assets

1.14 %

1.08 %

.88 %

Return on average common equity

11.02

10.51

9.30

Return on average tangible common equity (b)

13.02

12.43

11.24

Net interest margin (TE)

2.87

2.82

2.58

Cash efficiency ratio (b)

60.4

61.6

63.5

From consolidated operations:

Return on average total assets

1.14 %

1.08 %

.88 %

Return on average common equity

11.02

10.54

9.28

Return on average tangible common equity (b)

13.02

12.46

11.21

Net interest margin (TE)

2.87

2.81

2.58

Loan to deposit (c)

74.6

72.5

70.2

Capital ratios at period end

Key shareholders' equity to assets

10.6 %

11.1 %

10.1 %

Key common shareholders' equity to assets

9.3

9.7

8.8

Tangible common equity to tangible assets (b)

8.0

8.4

7.4

Common Equity Tier 1 (d)

11.4

11.8

11.6

Tier 1 risk-based capital (d)

13.0

13.5

13.3

Total risk-based capital (d)

15.2

15.7

Leverage (d)

10.5

10.2

Asset quality — from continuing operations

Net loan charge-offs

$ 101

$ 104

$ 110

Net loan charge-offs to average loans

.38 %

.39 %

.43 %

Allowance for loan and lease losses

$ 1,449

$ 1,427

$ 1,429

Allowance for credit losses

1,745

1,740

1,707

Allowance for loan and lease losses to period-end loans

1.33 %

1.34 %

1.36 %

Allowance for credit losses to period-end loans

1.60

1.63

Allowance for loan and lease losses to nonperforming loans

212

232

208

Allowance for credit losses to nonperforming loans

256

283

249

Nonperforming loans at period-end

$ 682

$ 615

$ 686

Nonperforming assets at period-end

692

627

700

Nonperforming loans to period-end portfolio loans

.62 %

.58 %

.65 %

Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets

.63

.59

.67

Trust assets

Assets under management

$ 69,756

$ 69,964

$ 61,053

Other data

Average full-time equivalent employees

17,469

17,396

16,989

Branches

940

945

Taxable-equivalent adjustment

$ 8

$ 9

(a)

Earnings per share may not foot due to rounding.

(b)

The table entitled "GAAP to Non-GAAP Reconciliations" starting on page 14 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)

March 31, 2026, ratio is estimated.

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.

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

3/31/2026

12/31/2025

3/31/2025

Net interest income (GAAP)

$ 1,222

$ 1,215

$ 1,096

Add: Taxable-equivalent adjustment

Net interest income TE (non-GAAP) (A)

$ 1,230

$ 1,223

$ 1,105

Net income (loss) attributable to Key common shareholders (GAAP) (B)

$ 486

$ 475

$ 369

Average Key shareholders' equity (GAAP)

$ 20,392

$ 20,388

$ 18,632

Less: Average intangible assets

2,758

2,762

2,777

Average preferred stock

2,500

Average tangible common equity (non-GAAP) (C)

$ 15,134

$ 15,126

$ 13,355

Key shareholders' equity (GAAP)

$ 19,987

$ 20,381

$ 19,003

Less: Intangible assets

2,757

2,760

2,774

Preferred stock (a)

2,446

Tangible common equity (non-GAAP) (D)

$ 14,784

$ 15,175

$ 13,783

Total assets (GAAP)

$ 188,663

$ 184,381

$ 188,691

Less: Intangible assets

2,757

2,760

2,774

Tangible assets (non-GAAP) (E)

$ 185,906

$ 181,621

$ 185,917

Tangible common equity to tangible assets ratio (non-GAAP) (D/E)

7.95 %

8.36 %

7.41 %

Return on average tangible common equity consolidated (non-GAAP) (B/C)

13.02 %

12.46 %

11.21 %

Common equity tier 1 (F)

$ 17,038

$ 17,195

$ 16,549

Add: AFS and Pension AOCI (loss)

(2,152)

(2,028)

(2,601)

Marked common equity tier 1 (non-GAAP) (G) (b)

$ 14,886

$ 15,167

$ 13,948

Risk-weighted assets (H) (c)

$ 149,465

$ 145,933

$ 142,478

Common equity tier 1 ratio (F/H) (c)

11.40 %

11.78 %

11.62 %

Marked CET1 ratio (non-GAAP) (G/H) (b)(c)

9.96 %

10.39 %

9.79 %

GAAP to Non-GAAP Reconciliations (continued)

(Dollars in millions)

Three months ended

3/31/2026

12/31/2025

3/31/2025

Income (loss) from continuing operations attributable to Key common shareholders (GAAP) (I)

$ 486

$ 474

$ 370

Plus: Selected items (net of tax) (d)

—

(16)

—

Net income (loss) from continuing operations attributable to Key common shareholders, excluding selected items (non-GAAP) (J)

$ 486

$ 458

$ 370

Return on average tangible common equity from continuing operations (non-GAAP) (I/C)

13.02 %

12.43 %

11.24 %

Adjusted return on average tangible common equity from continuing operations excluding selected items (non-GAAP) (J/C)

13.02 %

12.01 %

11.24 %

Noninterest income (GAAP) (K)

$ 723

$ 782

$ 668

Plus: Selected items (d)

—

Adjusted noninterest income (non-GAAP) (L)

$ 723

$ 782

$ 668

Noninterest expense (GAAP) (M)

$ 1,181

$ 1,241

$ 1,131

Less: Intangible asset amortization

Noninterest expense less intangible asset amortization (non-GAAP) (N)

$ 1,179

$ 1,236

$ 1,126

Plus: Selected items (d) (O)

—

Adjusted noninterest expense less intangible asset amortization (non-GAAP) (P)

$ 1,179

$ 1,257

$ 1,126

Adjusted noninterest expense (non-GAAP) (M+O)

$ 1,181

$ 1,262

$ 1,131

Total taxable-equivalent revenue (non-GAAP) (A+K) = (Q)

$ 1,953

$ 2,005

$ 1,773

Total adjusted taxable-equivalent revenue (non-GAAP) (A+L)

1,953

2,005

1,773

Cash efficiency ratio (non-GAAP) (N/Q)

60.37 %

61.65 %

63.51 %

Adjusted cash efficiency ratio (non-GAAP) (P/Q)

60.37 %

62.69 %

63.51 %

Pre-provision net revenue from continuing operations (non-GAAP) (A+K-M)

$ 772

$ 764

$ 642

Plus: Selected items (d)

—

(21)

—

Adjusted pre-provison net revenue from continuing operations (non-GAAP)

$ 772

$ 743

$ 642

Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)

$ 0.44

$ 0.43

$ 0.33

Plus: EPS impact of selected items (d)

—

(0.01)

—

Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP) (e)

$ 0.44

$ 0.41

$ 0.33

Adjusted noninterest income YoY Growth (R)

8.23 %

8.31 %

3.25 %

Adjusted taxable-equivalent revenue YoY Growth (S)

10.15 %

12.45 %

15.66 %

Adjusted noninterest expense YoY Growth (T)

4.42 %

3.27 %

31.51 %

Adjusted operating leverage (S - T)

5.73 %

9.18 %

(15.86) %

Adjusted fee-based operating leverage (R - T)

3.81 %

5.04 %

(28.27) %

(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 March 31, 2026 are estimated.

(d)

Additional detail provided in Selected Items table on page 22.

(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)

3/31/2026

12/31/2025

3/31/2025

Assets

Loans

$ 109,190

$ 106,541

$ 104,809

Loans held for sale

876

1,077

811

Securities available for sale

38,918

39,596

40,751

Held-to-maturity securities

9,116

8,622

7,160

Trading account assets

783

1,061

1,296

Short-term investments

11,782

10,163

15,349

Other investments

1,204

949

1,050

Total earning assets

171,869

168,009

171,226

Allowance for loan and lease losses

(1,449)

(1,427)

(1,429)

Cash and due from banks

1,130

1,287

1,909

Premises and equipment

618

628

602

Goodwill

2,752

Other intangible assets

Corporate-owned life insurance

4,439

4,432

4,404

Accrued income and other assets

9,100

8,481

8,958

Discontinued assets

199

211

247

Total assets

$ 188,663

$ 184,381

$ 188,691

Liabilities

Deposits in domestic offices:

Interest-bearing deposits

$ 120,220

$ 121,100

$ 122,283

Noninterest-bearing deposits

27,595

27,613

28,454

Total deposits

147,815

148,713

150,737

Federal funds purchased and securities sold under repurchase agreements

Bank notes and other short-term borrowings

6,149

1,071

2,328

Accrued expense and other liabilities

3,801

4,286

4,209

Long-term debt

10,877

9,917

12,392

Total liabilities

168,676

164,000

169,688

Equity

Preferred stock

2,500

Common shares

1,257

Capital surplus

5,981

6,035

5,946

Retained earnings

15,622

15,359

14,724

Treasury stock, at cost

(3,152)

(2,810)

(2,637)

Accumulated other comprehensive income (loss)

(2,221)

(1,960)

(2,787)

Key shareholders' equity

19,987

20,381

19,003

Total liabilities and equity

$ 188,663

$ 184,381

$ 188,691

Common shares outstanding (000)

1,087,293

1,102,401

1,111,986

Consolidated Statements of Income

(Dollars in millions, except per share amounts)

Three months ended

3/31/2026

12/31/2025

3/31/2025

Interest income

Loans

$ 1,416

$ 1,439

$ 1,401

Loans held for sale

Securities available for sale

370

388

392

Held-to-maturity securities

Trading account assets

Short-term investments

103

137

174

Other investments

Total interest income

2,005

2,078

2,070

Interest expense

Deposits

598

688

753

Federal funds purchased and securities sold under repurchase agreements

Bank notes and other short-term borrowings

Long-term debt

151

162

193

Total interest expense

783

863

974

Net interest income

1,222

1,215

1,096

Provision for credit losses

106

108

118

Net interest income after provision for credit losses

1,116

1,107

978

Noninterest income

Trust and investment services income

157

156

139

Investment banking and debt placement fees

197

243

175

Cards and payments income

Service charges on deposit accounts

Corporate services income

Commercial mortgage servicing fees

Corporate-owned life insurance income

Consumer mortgage income

Operating lease income and other leasing gains

Other income

Total noninterest income

723

782

668

Noninterest expense

Personnel

743

790

680

Net occupancy

Computer processing

111

106

107

Business services and professional fees

Equipment

Operating lease expense

Marketing

Other expense

179

157

185

Total noninterest expense

1,181

1,241

1,131

Income (loss) from continuing operations before income taxes

658

648

515

Income taxes (benefit)

136

139

109

Income (loss) from continuing operations

522

509

406

Income (loss) from discontinued operations, net of taxes

—

(1)

Net income (loss)

$ 522

$ 510

$ 405

Income (loss) from continuing operations attributable to Key common shareholders

$ 486

$ 474

$ 370

Net income (loss) attributable to Key common shareholders

486

475

369

Per common share

Income (loss) from continuing operations attributable to Key common shareholders

$ 0.45

$ 0.43

$ 0.34

Income (loss) from discontinued operations, net of taxes

—

Net income (loss) attributable to Key common shareholders (a)

0.45

0.43

0.34

Per common share — assuming dilution

Income (loss) from continuing operations attributable to Key common shareholders

$ 0.44

$ 0.43

$ 0.33

Income (loss) from discontinued operations, net of taxes

—

Net income (loss) attributable to Key common shareholders (a)

0.44

0.43

0.33

Cash dividends declared per common share

$ 0.205

Weighted-average common shares outstanding (000)

1,084,277

1,095,171

1,096,654

Effect of common share options and other stock awards (b)

10,091

11,152

9,486

Weighted-average common shares and potential common shares outstanding (000) (c)

1,094,368

1,106,323

1,106,140

(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)

First Quarter 2026

Fourth Quarter 2025

First 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)

$ 59,149

$ 843

5.76 %

$ 57,541

$ 851

5.88 %

$ 53,746

$ 800

6.04 %

Real estate — commercial mortgage

13,902

198

5.76

13,356

198

5.91

13,061

192

5.96

Real estate — construction

2,803

6.50

2,839

6.71

2,905

6.87

Commercial lease financing

2,213

3.81

2,302

3.73

2,653

3.52

Total commercial loans

78,067

1,107

5.73

76,038

1,118

5.84

72,365

1,064

5.96

Real estate — residential mortgage

18,593

155

3.34

18,853

157

3.33

19,737

165

3.33

Home equity loans

5,609

5.35

5,780

5.47

6,248

5.60

Other consumer loans

4,558

5.16

4,715

5.15

5,087

5.01

Credit cards

910

13.24

930

13.24

917

14.04

Total consumer loans

29,670

317

4.30

30,278

329

4.33

31,989

346

4.35

Total loans

107,737

1,424

5.35

106,316

1,447

5.41

104,354

1,410

5.47

Loans held for sale

1,092

4.99

1,234

5.84

815

6.70

Securities available for sale (b), (e)

39,403

370

3.59

39,785

388

3.67

39,321

392

3.70

Held-to-maturity securities (b)

8,795

3.91

8,056

3.78

7,274

3.46

Trading account assets

865

4.96

961

4.79

1,296

5.20

Short-term investments

11,134

103

3.74

13,603

137

4.01

15,211

174

4.63

Other investments (e)

1,075

1.97

935

3.09

935

3.73

Total earning assets

170,101

2,013

4.71

170,890

2,086

4.79

169,206

2,079

4.86

Allowance for loan and lease losses

(1,419)

(1,435)

(1,401)

Accrued income and other assets

17,567

17,562

18,285

Discontinued assets

204

215

254

Total assets

$ 186,453

$ 187,232

$ 186,344

Liabilities

Money market deposits

$ 42,732

$ 223

2.12 %

$ 42,442

$ 246

2.30 %

$ 42,007

$ 275

2.65 %

Demand deposits

61,478

279

1.84

61,541

319

2.06

57,460

310

2.19

Savings deposits

4,378

.04

4,358

.05

4,610

.06

Time deposits

11,777

3.26

13,857

122

3.48

16,625

167

4.09

Total interest-bearing deposits

120,365

598

2.01

122,198

688

2.23

120,702

753

2.53

Federal funds purchased and securities sold under repurchase agreements

1,539

3.69

413

3.80

100

3.94

Bank notes and other short-term borrowings

2,585

3.20

1,072

3.23

2,273

4.74

Long-term debt (f)

10,186

151

5.96

10,274

162

6.27

11,779

193

6.61

Total interest-bearing liabilities

134,675

783

2.35

133,957

863

2.56

134,854

974

2.92

Noninterest-bearing deposits

26,934

28,512

27,840

Accrued expense and other liabilities

4,248

4,160

4,764

Discontinued liabilities (f)

204

215

254

Total liabilities

$ 166,061

$ 166,844

$ 167,712

Equity

Total equity

$ 20,392

$ 20,388

$ 18,632

Total liabilities and equity

$ 186,453

$ 187,232

$ 186,344

Interest rate spread (TE)

2.36 %

2.23 %

1.94 %

Net interest income (TE) and net interest margin (TE)

$ 1,230

2.87 %

$ 1,223

2.82 %

$ 1,105

2.58 %

TE adjustment (b)

Net interest income, GAAP basis

$ 1,222

$ 1,215

$ 1,096

(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 March 31, 2026, December 31, 2025, and March 31, 2025.

(c)

For purposes of these computations, nonaccrual loans are included in average loan balances.

(d)

Commercial and industrial average balances include $205 million, $211 million, and $213 million of assets from commercial credit cards for the three months ended March 31, 2026, December 31, 2025, and March 31, 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 $41.5 billion, $42.1 billion, and $42.7 billion for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. Yield based on the fair value of securities available for sale was 3.75%, 3.90%, and 3.99% for the three months ended March 31, 2026, December 31, 2025, and March 31, 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

3/31/2026

12/31/2025

3/31/2025

Personnel (a)

$ 743

$ 790

$ 680

Net occupancy

Computer processing

111

106

107

Business services and professional fees

Equipment

Operating lease expense

Marketing

Other expense

179

157

185

Total noninterest expense

$ 1,181

$ 1,241

$ 1,131

Average full-time equivalent employees (b)

17,469

17,396

16,989

(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

3/31/2026

12/31/2025

3/31/2025

Salaries and contract labor

$ 439

$ 446

$ 405

Incentive and stock-based compensation

172

205

158

Employee benefits

127

131

109

Severance

Total personnel expense

$ 743

$ 790

$ 680

Loan Composition

(Dollars in millions)

Change 3/31/2026 vs.

3/31/2026

12/31/2025

3/31/2025

12/31/2025

3/31/2025

Commercial and industrial (a), (b)

$ 60,651

$ 57,688

$ 54,378

5.1 %

11.5 %

Commercial real estate:

Commercial mortgage

14,144

13,707

13,239

3.2

6.8

Construction

2,801

2,844

2,929

(1.5)

(4.4)

Total commercial real estate loans

16,945

16,551

16,168

2.4

4.8

Commercial lease financing (b)

2,200

2,270

2,576

(3.1)

(14.6)

Total commercial loans

79,796

76,509

73,122

4.3

9.1

Real estate — residential mortgage

18,483

18,732

19,622

(1.3)

(5.8)

Home equity loans

5,528

5,703

6,154

(3.1)

(10.2)

Other consumer loans

4,477

4,644

5,000

(3.6)

(10.5)

Credit cards

906

953

911

(4.9)

(.5)

Total consumer loans

29,394

30,032

31,687

(2.1)

(7.2)

Total loans (c), (d)

$ 109,190

$ 106,541

$ 104,809

2.5 %

4.2 %

(a)

Loan balances include $207 million, $205 million, and $218 million of commercial credit card balances at March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

(b)

Commercial and industrial includes receivables held as collateral for a secured borrowing of $192 million at March 31, 2025. Principal reductions are based on the cash payments received from these related receivables.

(c)

Total loans exclude loans of $194 million at March 31, 2026, $205 million at December 31, 2025, and $243 million at March 31, 2025, related to the discontinued operations of the education lending business.

(d)

Accrued interest of $443 million, $459 million, and $448 million at March 31, 2026, December 31, 2025, and March 31, 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 3/31/2026 vs.

3/31/2026

12/31/2025

3/31/2025

12/31/2025

3/31/2025

Commercial and industrial

$ 139

$ 167

$ 252

(16.8) %

(44.8) %

Real estate — commercial mortgage

637

761

473

(16.3)

34.7

Real estate — residential mortgage

100

149

(32.9)

16.3

Total loans held for sale

$ 876

$ 1,077

$ 811

(18.7) %

8.0 %

Summary of Changes in Loans Held for Sale

(Dollars in millions)

1Q26

4Q25

3Q25

2Q25

1Q25

Balance at beginning of period

$ 1,077

$ 998

$ 530

$ 811

$ 797

New originations

2,034

3,356

3,471

1,806

1,840

Transfers from (to) held to maturity, net

(13)

(35)

—

(71)

Loan sales

(2,201)

(3,232)

(2,956)

(2,012)

(1,695)

Loan draws (payments), net

(25)

(10)

(42)

(1)

(138)

Valuation and other adjustments

—

(5)

(3)

Balance at end of period

$ 876

$ 1,077

$ 998

$ 530

$ 811

Summary of Loan and Lease Loss Experience From Continuing Operations

(Dollars in millions)

Three months ended

3/31/2026

12/31/2025

3/31/2025

Average loans outstanding

$ 107,737

$ 106,316

$ 104,354

Allowance for loan and lease losses at the beginning of the period

$ 1,427

$ 1,444

$ 1,409

Loans charged off:

Commercial and industrial

Real estate — commercial mortgage

Real estate — construction

—

Total commercial real estate loans

Commercial lease financing

—

Total commercial loans

Real estate — residential mortgage

—

Home equity loans

Other consumer loans

Credit cards

Total consumer loans

Total loans charged off

117

124

126

Recoveries:

Commercial and industrial

Real estate — commercial mortgage

—

Real estate — construction

—

Total commercial real estate loans

—

Commercial lease financing

—

Total commercial loans

Real estate — residential mortgage

Home equity loans

Other consumer loans

Credit cards

Total consumer loans

Total recoveries

Net loan charge-offs

(101)

(104)

(110)

Provision (credit) for loan and lease losses

123

130

Allowance for loan and lease losses at end of period

$ 1,449

$ 1,427

$ 1,429

Liability for credit losses on lending-related commitments at beginning of period

$ 313

$ 292

$ 290

Provision (credit) for losses on lending-related commitments

(17)

(12)

Liability for credit losses on lending-related commitments at end of period (a)

$ 296

$ 313

$ 278

Total allowance for credit losses at end of period

$ 1,745

$ 1,740

$ 1,707

Net loan charge-offs to average total loans

.38 %

.39 %

.43 %

Allowance for loan and lease losses to period-end loans

1.33

1.34

1.36

Allowance for credit losses to period-end loans

1.60

1.63

Allowance for loan and lease losses to nonperforming loans

212

232

208

Allowance for credit losses to nonperforming loans

256

283

249

Discontinued operations — education lending business:

Loans charged off

$ 1

Recoveries

—

Net loan charge-offs

$ (1)

(a)

Included in "Accrued expense and other liabilities" on the balance sheet.

Asset Quality Statistics From Continuing Operations

(Dollars in millions)

1Q26

4Q25

3Q25

2Q25

1Q25

Net loan charge-offs

$ 101

$ 104

$ 114

$ 102

$ 110

Net loan charge-offs to average total loans

.38 %

.39 %

.42 %

.39 %

.43 %

Allowance for loan and lease losses

$ 1,449

$ 1,427

$ 1,444

$ 1,446

$ 1,429

Allowance for credit losses (a)

1,745

1,740

1,736

1,743

1,707

Allowance for loan and lease losses to period-end loans

1.33 %

1.34 %

1.36 %

Allowance for credit losses to period-end loans

1.60

1.63

1.64

1.63

Allowance for loan and lease losses to nonperforming loans

212

232

219

208

Allowance for credit losses to nonperforming loans

256

283

264

250

249

Nonperforming loans at period end

$ 682

$ 615

$ 658

$ 696

$ 686

Nonperforming assets at period end

692

627

668

707

700

Nonperforming loans to period-end portfolio loans

.62 %

.58 %

.62 %

.65 %

Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets

.63

.59

.63

.66

.67

(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)

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Commercial and industrial

$ 284

$ 256

$ 253

$ 280

$ 288

Real estate — commercial mortgage

190

157

214

226

206

Real estate — construction

—

Total commercial real estate loans

190

157

214

226

206

Commercial lease financing

—

Total commercial loans

480

420

467

506

494

Real estate — residential mortgage

115

104

Home equity loans

Other Consumer loans

Credit cards

Total consumer loans

202

195

191

190

192

Total nonperforming loans (a)

682

615

658

696

686

OREO

Nonperforming loans held for sale

—

Total nonperforming assets

$ 692

$ 627

$ 668

$ 707

$ 700

Accruing loans past due 90 days or more

$ 153

$ 99

$ 110

$ 74

$ 86

Accruing loans past due 30 through 89 days

137

220

254

266

281

Nonperforming assets from discontinued operations — education lending business

Nonperforming loans to period-end portfolio loans

.62 %

.58 %

.62 %

.65 %

Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets

.63

.59

.63

.66

.67

Summary of Changes in Nonperforming Loans From Continuing Operations

(Dollars in millions)

1Q26

4Q25

3Q25

2Q25

1Q25

Balance at beginning of period

$ 615

$ 658

$ 696

$ 686

$ 758

Loans placed on nonaccrual status

253

248

210

233

170

Charge-offs

(117)

(124)

(140)

(127)

(126)

Loans sold

(2)

(7)

(13)

—

Payments

(37)

(124)

(68)

(74)

(57)

Transfers to OREO

(1)

(2)

Loans returned to accrual status

(29)

(35)

(26)

(21)

(57)

Balance at end of period

$ 682

$ 615

$ 658

$ 696

$ 686

Line of Business Results

(Dollars in millions)

Change 1Q26 vs.

1Q26

4Q25

3Q25

2Q25

1Q25

4Q25

1Q25

Consumer Bank

Summary of operations

Total revenue (TE)

$ 978

$ 998

$ 992

$ 967

$ 932

(2.0) %

4.9 %

Provision for credit losses

25.0

(7.0)

Noninterest expense

709

734

693

694

675

(3.4)

5.0

Net income (loss) attributable to Key

173

176

196

165

163

(1.7)

6.1

Average loans and leases

34,005

34,683

35,363

36,137

36,819

(2.0)

(7.6)

Average deposits

87,796

87,738

87,692

88,002

88,306

(.6)

Net loan charge-offs

(18.4)

(23.1)

Net loan charge-offs to average total loans

.48 %

.56 %

.55 %

.44 %

.57 %

(14.3)

(15.8)

Nonperforming assets at period end

$ 270

$ 262

$ 266

$ 269

$ 278

3.1

(2.9)

Return on average allocated equity

24.76 %

24.24 %

26.03 %

21.91 %

21.28 %

2.1

16.4

Commercial Bank

Summary of operations

Total revenue (TE)

$ 1,117

$ 1,194

$ 1,114

$ 1074

$ 1047

(6.4) %

6.7 %

Provision for credit losses

(4.1)

N/M

Noninterest expense

474

515

485

451

464

(8.0)

2.2

Net income (loss) attributable to Key

451

472

440

423

399

(4.4)

13.0

Average loans and leases

73,146

71,107

70,328

69,089

67,058

2.9

9.1

Average loans held for sale

958

1,140

1,224

707

754

(16.0)

27.1

Average deposits

58,929

60,485

58,523

55,927

57,481

(2.6)

2.5

Net loan charge-offs

20.8

12.3

Net loan charge-offs to average total loans

.35 %

.30 %

.36 %

.34 %

16.7

2.9

Nonperforming assets at period end

$ 422

$ 365

$ 402

$ 438

$ 422

15.6

—

Return on average allocated equity

18.10 %

18.80 %

17.83 %

17.55 %

17.16 %

(3.7)

5.5

TE = Taxable Equivalent; N/M = Not Meaningful

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 March 31, 2026

No items

$ —

Three months ended December 31, 2025

FDIC special assessment (other expense) (c)

0.01

Three months ended September 30, 2025

FDIC special assessment (other expense) (c)

—

Three months ended June 30, 2025

No items

—

Three months ended March 31, 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.

SOURCE KeyCorp