KeyCorp

Good morning and welcome to KCorp's third quarter 2026 earnings conference call. During the presentation, you can register a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. As a reminder, this conference is being recorded. I would now like to turn the conference over to Troy Gates, KCorp's Director of Investor Relations. Please go ahead.

Thank you, operator, and good morning, everyone. I'd like to thank you for joining KCorp's third quarter 2026 earnings conference call. I'm here with Chris Gorman, our chairman and chief executive officer, Clark Khayat, our chief financial officer and head of technology, and Mohit Ramani, our chief risk officer. As usual, we will reference our earnings presentation slides, which can be found in the investor relations section of the key.com website. In the back of the presentation, We will find our statement on forward-looking disclosures and certain financial measures, including non-GAAP measures. This covers our earnings materials, as well as remarks made on this morning's call. Actual results may differ materially from forward-looking statements, and those statements speak only as of today, October 20th, 2026, and will not be updated. With that, I will turn it over to Chris.

Thank you, Troy, and good morning, everyone. We reported third quarter earnings of 51 cents per share, up 24% year-over-year, reflecting the strength of Key's relationship-driven franchise, the disciplined execution of our strategy, and the momentum we continue to build across the business. We reported record quarterly revenue of over $2 billion, which represents 8% year-over-year growth, PPNR growth of $60 million on a linked quarter basis, and importantly return on tangible common equity that exceeded 15% as we continue to make significant progress with respect to achieving and sustaining a 15% plus return on tangible common equity by year end 2027 on our path to achieving our current long-term target between 16 and 19%. We continue to deliver on the commitments we have made Our relationship-focused business model continues to differentiate key and was evident again this quarter. Our deposit franchise continues to perform well in a competitive environment. Average total deposits grew $3.6 billion while interest-bearing deposit costs increased only three basis points during the quarter. Overall funding costs rose just one basis point. Net interest margin expanded six basis points sequentially to 2.95%, reflecting the continued fixed asset repricing and funding optimization. Our capital markets team delivered strong results with investment banking and debt placement fees increasing 27% sequentially with growth in M&A and syndications.