The company's relationship-based business model continues to perform well, evidenced by a 4% year-over-year increase in client deposits and 2% net new relationship household growth. This indicates successful organic growth initiatives within the Consumer Bank (Page 8).

Assets Under Management (AUM) reached $61.1 billion in Q1 2025, up 6.5% from $57.3 billion in Q1 2024. This increase, driven by new Key Private Client enrollments, contributed to a $3 million (2.2%) year-over-year increase in trust and investment services income (Page 8, 22).

The Board of Directors authorized a new $1.0 billion share repurchase program in Q1 2025, with purchases expected to commence in the second half of the year. This decision signals management's confidence in future performance and commitment to returning capital to shareholders (Page 8, 39).

KeyCorp ended Q1 2025 with an estimated Common Equity Tier 1 ratio of 11.8%, an increase of approximately 150 basis points year-over-year. This ratio is well above the regulatory minimum of 7.60%, positioning the company to support existing and prospective clients and weather adverse conditions (Page 8, 10).

Total noninterest expense decreased by $12 million, or 1.0%, to $1.131 billion in Q1 2025 compared to $1.143 billion in Q1 2024. This improvement was primarily driven by a decrease in the FDIC special assessment charge, partially offset by increased technology-related investments (Page 18, 24).

The company's continuous focus on risk discipline is evident as net charge-offs remained at the low-end of the long-term target range (40-60 basis points), and nonperforming loans decreased by 9% quarter-over-quarter. This indicates effective management of credit quality through business cycles (Page 8).

The provision for credit losses rose to $118 million in Q1 2025 from $101 million in Q1 2024, primarily driven by the impact of uncertainty in the economic outlook. This reflects a proactive stance on potential future credit quality deterioration despite some improved credit migration trends (Page 21).

The FDIC's final rule issued in November 2023 imposes a special assessment on IDIs to recover losses from failed banks (SVB and Signature), with KeyCorp recognizing an initial $190 million pre-tax expense in Q4 2023. The assessment is collected at an annual rate of approximately 13.4 basis points over eight quarterly periods, starting Q1 2024, posing an ongoing financial burden (Page 14).

Management notes continued economic resiliency but highlights unprecedented geopolitical uncertainty due to recent changes in trade and other policies. These factors could add stress to the economic outlook, leading to qualitative reserve increases for the commercial segment due to downside economic assumptions (Page 73).

KeyCorp achieved a record first quarter for investment banking and debt placement fees, driven by strong syndication and debt capital markets activity. This performance underscores the Commercial Bank's competitive strength and expertise in capital markets (Page 8, 23).

Commercial loans represent 52% of the total loan portfolio at March 31, 2025, primarily consisting of variable-rate loans to large corporate, middle market, and small business clients. This diversified focus across various industries (e.g., Finance, Healthcare, Utilities) provides a broad market presence (Page 29, 30).

The company's long-term strategic commitment to primacy and its relationship-based business model continue to serve well, resulting in a 4% year-over-year increase in client deposits and 2% net new relationship household growth. This approach fosters client loyalty and strengthens market position (Page 8).

Total noninterest expense for Q1 2025 was $1.131 billion, a decrease of $12 million (1.0%) from $1.143 billion in Q1 2024. This reduction was primarily driven by a lower FDIC special assessment charge in the prior year, partially offset by increased technology-related investments (Page 18, 24).

Personnel expense, the largest category of noninterest expense, increased by $6 million (0.9%) in Q1 2025 compared to the year-ago period. This rise reflects higher general salary expense stemming from an increased head count, slightly offset by a decrease in deferred savings plan benefit costs (Page 24).

Nonpersonnel expense decreased by $18 million (3.8%) year-over-year, largely due to the absence of the FDIC special assessment charge from Q1 2024. However, this positive impact was partially offset by increases in technology-related investments, indicating ongoing operational modernization efforts (Page 24).

While overall nonpersonnel expense decreased, the filing notes an increase in technology-related investments for the three months ended March 31, 2025, compared to the year-ago quarter. This suggests ongoing efforts to enhance digital capabilities and infrastructure (Page 24).

KeyCorp utilizes sophisticated risk models, including scorecards for consumer loans and quantitative modeling for commercial loans, to evaluate credit risk and make automated decisions. This data-driven approach, incorporating macroeconomic variables and portfolio attributes, enhances risk management capabilities (Page 54, 73).

The company recently adopted a new pricing model for indeterminate maturity interest-bearing deposits, referred to as a 'new deposit beta model.' This model incorporates more historical data to more accurately reflect client behavior in various interest rate cycles, improving the precision of interest rate risk management (Page 45).

The Board of Directors authorized a share repurchase program of up to $1.0 billion of common shares in Q1 2025, with purchases expected to begin in the second half of 2025. This indicates a commitment to enhancing shareholder value and reflects confidence in the company's financial position (Page 8, 39).

KeyCorp declared a quarterly dividend of $0.205 per Common Share for Q1 2025, consistent with its capital plan. This demonstrates a stable return of capital to shareholders, reflecting a balanced approach to capital management (Page 39).

The Common Equity Tier 1 ratio stood at an estimated 11.8% at March 31, 2025, up significantly from 10.3% at March 31, 2024. This robust capital position provides flexibility to support organic growth, strategic initiatives, and capital distributions, aligning with the company's capital management objectives (Page 8, 10).

KeyCorp continues to invest significantly in LIHTC operating partnerships, with $2.4 billion in investments at March 31, 2025. These investments are part of the company's social responsibility initiatives, contributing to affordable housing projects (Page 103).

The company reported $29 million in NMTC investments at March 31, 2025, consistent with the prior period. These investments align with community development goals, supporting economic development in underserved communities (Page 105).

The filing mentions 'our ability to manage reputational risk, including risks related to corporate responsibility and sustainability efforts' as a factor that could cause actual results to differ. While not detailing specific new initiatives, it acknowledges the importance of these areas to its reputation and risk management framework (Page 7).

The company's economic outlook for Q1 2025 indicates continued economic resiliency, with Moody's February 2025 Consensus forecasting U.S. GDP growth of approximately 2% for 2025 and 2026, and unemployment remaining near 4%. However, unprecedented geopolitical uncertainty and policy changes are noted as potential downside risks (Page 73).

The regulatory landscape continues to evolve, with a preliminary injunction barring the enforcement of the new CRA final rule and ongoing lawsuits challenging CFPB's authority. KeyCorp is actively monitoring these developments, which could impact its operational and compliance strategies (Page 14).

The FDIC's special assessment, initiated in Q1 2024 to recover losses from failed banks, continues to be collected at an annual rate of approximately 13.4 basis points. This ongoing assessment represents a direct financial impact stemming from broader industry conditions (Page 14).