KEY - Earnings call transcript Q1 2020

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Operator

Hello, and welcome to KeyCorp’s First Quarter 2020 Earnings Conference Call.

As a reminder, this call is being recorded. At this time, I would like to pass it over to President and Chief Operating Officer, Chris Gorman. Please go ahead.

Chris Gorman

Thank you, operator. morning. Good KeyCorp’s Earnings to Call. Quarter First welcome Conference XXXX And

Midkiff, Beth call Chief Chief Joining Officer. Mark the are Financial Chief Mooney, and our me on Kimble, today our Risk Don Executive Officer; our Officer;

X measures. covers well financial as Slide and question-and-answer segment comments, materials It our forward-looking our statement disclosure is of non-GAAP and the presentation as of our call.

ways none this been spread that the country, human are resiliency, of to Slide encouraged of us challenges I've lives extra confident crises. has Despite I'm resiliency with the could will and an toll have all X. facing strength and unprecedented ordinary anticipated. heavy carry a by the us collective was turning of our It now our this we through causing am in and I impacted throughout COVID-XX time daily

So, overview a a let on at giving where start me KEY. you here stand brief by things

are our we our and colleagues business effect we our which resiliency our and made, communities the maintained have In plans organization. of health have and in have our First, top remained operate safety across clients, in every effectiveness we operational priority. decision

playing are capital the supporting in been through credit XX,XXX program. to than applications world Secondly, committed more XX,XXX and To and strengthen the a have protection broader submitted have our providing clients our to payroll over approved we systems initiatives newly economy. to we critical date, extensions introduced and

Slide the the the to from want moving economic financial in by near-term pandemic. now I'm impacted which address COVID-XX X. be I to our will outlook, fallout

of position operating Importantly, strength. from a we are

but opportunities will economic well recovery us through and provide strategy us Our financial business and clear significant during this model period phase. the with of importantly, stress position

returns. we have to financial to not want leverage changed. this crisis, also plays role. to other the And environment, long-term critical side a and quality continue deliver of strong this In operating credit targets on positive expect our I affirm

in the through risk crisis, and to is strategy, some are reality view is, we Although, lens of KEY that our the today financial our of continue would terms company our the team. different leadership profile a

significantly phases highly-stressed We sectors position all which business risk our and cycle, of through KEY exposure today. industries, like it the perform we to high the one well including have and operating environments are in reduced to

along Our both moderate risk will informs Don decisions rounds of with economic have on we stress share respect tests CECL. for other financial loans. section final KEY banks These have through periods while and in credit the focuses clients. to with profile stress, financial of to of that support more company. clear severe participated detail our well-capitalized also measures strengths credit continuing several the and this our would our major our mandated our key tests slide and of shown remain crisis. government liquidity, underwrite adoption The capital and since way

position also remained liquid combined assets unused $XX liquidity capacity. billion Our borrowing a and strong with in

long-term Let me confidence company. by remarks outlook the for reaffirming in close my our our

apart. past set decade the faces strengthen reposition we taken the will to company, we industry near-term clearly our believe have Although, and over KEY challenges, our steps

We have a targeted on focused business consistent relationships. and strategy

a the we capital in which deploy have approach position our in disciplined We manner strong capital. and

significant sources liquidity. have of We

clients that these times. over we company team dramatically the through to challenging manage our We management a dedicated years. is have and de-risked our also our several And have communities last helping

will purpose and leadership is that to small us past over years. our clear of Beth say on company. this want she call Beth has I Mooney's And offer outstanding provided is remarks as to finally, lost since not our after Don. CEO, best nine sense the few part is to foundation it no of a I a the acknowledge But earnings want just leadership any last strong due

have said well of have in I journey. not before, next the wish we partner stage I her her for a better As asked and could

turn that, Don on the to With me call to over let report the quarter.

Don Kimble

net the Thanks losses per This the outlook Current now income majority the of CECL, X results first In global the resulted level. continuing common January from quarter and Chris. provision allowance credit impacted The we changed $XXX economic reflects in outlook. on impacted quarter include charge-off pandemic. that loan Through morning, have a exceeded a everything. experienced COVID-XX share. Timing operations expense I'm Areas reported economic of quality compared we to $X.XX impact our February, first quarter's stable Slide vast by increase really the by of X. for been being is net pandemic. million.

investment pipeline many area our credit and The on Market a this of slide to items trading implied month losses the spreads valuation or reserves adjustments include approximately actual $XX rest remaining was significant of is quarter of rates just for market increase reflecting credit derivatives, our remainder million our spreads. below the from million I'll adjustments the totaled The banking the marks my fees. in presentation. other of related One expectations to due widening placement $XX ago. impact default in again given in customer $XX the market. million results of related These in are the once the the of debt million. $XX cover portfolio

draws of alone, investment from approximately draws liquidity including the in note the first facilities loans short-term growth loans C&I in March Commercial average billion of billion, X% were about reflect provided and customers. of quarter is came It commercial Slide grade increased consumer driven both to March up customers. Turning in the loans. that growth from Total $X year, month X. to last in and to line XX% by $XX important

from $X.X Road this loans benefited million we Laurel strong quarter Linked quarter The X%. Road business. loans results average portfolio. residential our investments and the growth our loan of these up in residential areas importantly, to from balances loans mortgage made of quality were continue Consumer high Laurel and have $XXX to generated loans. adding and we billion student consolidation mortgage originated drive

line next slow are level. commercial draws other For quarter, loan March to the expected and growth from

CPP of growth, the We the however reflecting program. will show impact strong

over XX,XXX mentioned, we our requests applications, these fundings This are to and to critical Chris the have occurring As efforts. billion quickly. we $X support and of customers are program representing is processed pleased

our have meet credit and remained business risk disciplined walked we profile. not Importantly, have moderate we with our does underwriting away from that

credit the We are decade manage this to were performing with company we term perspective. committed cycle, quality we well a a We and different business than our ago. longer remain through

clients. from to linked the quarter or a down to expected in X% on several quarter. It Average quarter. strong decline billion $X for deposit Slide in note year temporary billion also XXXX, balances totaled by and positions. support was flows prior continuing early year Growth prior $XXX deposit in reduction to the since up consumer to The X. reflects growth have our first important compared both period and is the funded liquidity February, Continuing loan X% the driven the of deposits quarter the ago commercial

points the deposit the approximately these interest the to interest down of the XX above XX impact reflecting We in second decline basis quarter, in also continue basis costs Total prior points expect points from bearing would pricing. costs in associated to came lower XX quarter. lag basis rates

deposits for base stable with We of mix. deposit consumer our continue XX% have to core accounting a deposit total strong

of was million the $XXX quarter to quarter and of Turning $XXX XXXX million for the to compared first Slide $XXX interest quarter. X. the net income million Taxable prior first XXXX in equivalent in

prior X.XX% Our net mix Compared sheet the driven for improved interest quarter. quarter interest first XXXX to prior this growth. an and balance quarter, X.XX% strong net for quarter the to was margin compared increased for of million, income loan $X and the X.XX% by

Our for the the quarter net mix. interest reflects improved sheet margin balance

loans loans, expect the the interest quarter decline to net second the originations as would increase first into the quarter, expected loan Net we result products. level. Looking as margin the is lower of from other on a yield than interest income should of these PPP

of businesses. Slide quarter. was million to noninterest $XXX quarter $XXX income, due impact increases of This spreads. $XX credit on a $XX the $XX market the valuation to significant the XX. for year pandemic Moving sensitive compared clearly included our XXXX prior the ago in quarter quarter, million derivatives for the our and the first adjustments. negative in reflected reflected for KEY's reserves quarter million Other current for million The of $XXX market-related income to of customer million million

the gain March on quarter income million adjustment. billion include the the other market-related for cumulative or this exceeds portfolio levels losses spreads. credit area of The in great by And $X.X recession. offset total now The of recognized marks, trading portion $XX narrow an down losses income operating impairment. also increased the from mortgage note, with included remaining areas lease of recorded originations would reserves if credit higher adjustments of by MSR come reserve of reflected XXst levels. valuation through the million this for valuation $X The million driven spreads consumer $X sales Two the

Going Investment levels. this to quarter, challenging fee market-related banking debt would into predict Most time. be meaningful activity categories further the other and not fees evaluation lower income second adjustments. slightly, placement expect down are reflecting we would at

Lower lower for seasonally in to the April turning million benefit results in improvements ago were non-interest prior Now notable notable reflected expense compared XX. of efficiency Adjusting this the contributed adjusting declined $X XXXX. items expense down and both million. correlated of marketing this Laurel Road to noninterest Slide declined the prior incentive and this variable compensation the year down Expense Business trended services costs addition decline. quarter the to levels period, compensation. revenues the as to Compared for quarter. to despite quarters $XX items, quarter,

million, year adopted loan of credit the of in impact February, outlook CECL to year, By of our the economic with to the very with consistent of an for losses reflecting Turning $XXX remain quarter, economic start portfolio consistent the the was the previous our considerably, the reflecting this of Slide reserves end of expected end forecasts, increase the the of and the the quality CECL as changed Through of stable, were XX. X resulting the pandemic. year. disclosures. January allowance

down in While downturn updated no net late outlook the in $XXX economic our expense a in activity provision of This one resulted change incorporate severe charge-offs million. exceeding reserves the knows recovery CECL duration the beginning depth economic with we or by to in a turn, economic year.

the customers downturn. programs potential our including of by economy. benefit and help be we our implemented through we from governments should depth the duration various to current insight additional to the into As progress It the also the refine our the and provide will quarter, outlook, able

basis loans to Now loans quarter, remain our million turning in or average the charge-offs which $XX as Slide below Non-performing our the build were points. total over $XXX the our from prior cycle of basis million CECL. were first the XXst. metrics XX $XX Net in of to XX quality the increase strong basis points be of from continues $XX reclassification NPLs from allowances, the increased this of our quarter. reflecting million Adjusted credit range for resulting points million XX. Despite of for March net to XX quarter, reclassification, adoption

basis loans prior gas the portfolio. changes of rating with in the flat impact Criticized our points reflecting and prior and conditions Non-performing increased period represent end the and loan modesty, loans XX of year. loans market quarter oil

March, commercial grade points. During line of to loan generally the and to end XXX by investment of our in At facilities draws related increase the customers. actually rated outstanding the our basis temporary commercial quarter, the increased book highly customers liquidity percent

customers. area is One to our from continue of the assistance monitor we another level request

approximately the about end accounts. of requests customers of from we’ve received As of week, our last X.X% XX,XXX retail

approximately from commercial our also customers. We XXX requests similar received

is While than less been we expected. early have still request levels this originally

XX, is to slide on the received Included we or questions areas. certain customer industry environment. at a Turning given about groups current summary those of this the exposure Slide

small the can by see, As you a and represent those proportion are type geography. areas and most portfolio overall of diversified of

reviews of monitoring occurred relationships quarter. are that process, in after often be weekly the the of at We have the that activity March might Outstanding as and in and enhanced balances reflect draw more implemented more vulnerable current some shown late environment. XX providing

and of actions the for ratios Now were Slide planned economic sheet Capital term. capital completed reflected the growth XX. impact lower balance outlook our earnings. on quarter quarter Most before of the this the to

of required our range well as year-end. As fed. result, XX X.XX% basis levels points the below level XXst, from our tier was slightly above down stress the a common equity but ratio capital buffer target by X This was March

recognizing environments, target operating sufficient capital those to was we to stressed as Our the below provide we the capital established target experienced in impact at be would of operate levels environments.

dividend. based level provides to capital maintain needs, capacity This and current customers our and outlook borrowing sufficient continue their on support to our our

our to a capital. As our capital stress helpful shares capital with to support from dividend, The new are actions. buffer reminder, also continue continue strong repurchase to organic priorities guidelines excess growth, our addressing to be, capital in common

suspended buyback our announced we the through As share earlier, second quarter.

we On our comments second and high provided Slide for insights level the quarter. XX, best

Given for the impacting There various XXXX. year, range full-year the bridge for the and be have Also benefit customers. local the the a the uncertain this and economic full help wide guidance of of of scenarios retail our outlook the will on programs downturn. is we removed depth economic that still duration

As quarter, we impact us support move of on visibility we the through and to year provided on provide have economic our more outlook. to more the clients, our second to expect COVID-XX the clarity allowing full

and production program the levels continued the loan by above. and originations. good commercial as noted in remain This consumer loan from growth areas. strong, end reflecting much Deposits our of both consumer quarter, PPP and growth, will driven should commercial balances strength the the of the support loan Loan expected would growth the of growth show first

Net by interest loans. growth income to in is levels, from up expected the driven first be quarter

program. impact We reflecting of the PPP margin the expect net to interest decline, dilutive

down For market to Investment time. fee other further at be and expect are Those noninterest related adjustments. challenging slightly, placement predict income, income remain debt -- categories levels. valuation would fees activity not would banking reflecting meaningful this lower we would

The rapidly, of Net Non-interest the provided. continues for be XX the slightly impact and next target to change outlook are increase be to expenses offs challenged XX can continues to the relatively end basis basis to around which points. environment stable environment should of comments our expected points -- quarter. range lower the to charge we

at long-term shown Finally the of targets. our are bottom slide the

would the Given expect downturn, all to achieve targets not we these this economic year.

ranges. that operate current we path be to However, within expect lead us the from back targeted crisis, emerge as we on to the will these

not achieve wavered our long-term commitment from we Importantly, targets. to have our

add Before operator, some would Beth? Beth the we to like turn comments. over to the call back closing

Beth Mooney

Thank you, morning. and Don, good

and for lot feelings mixed with of privilege So also have CEO this my a I've before, be to been I my recognize this meeting enjoyed highlight great I end industry. has been said as and our of line always important and KEY company of the do you career, at of many the of the approach that you will proud the being the of time today I've and part on the team. work

I've company those incredibly collectively, as the XX clients and we never our in. years find service to of a we and have unparalleled ourselves I've KEY to strong, with dedicated CEO, years been and for important at worked times our nine more different value spaced talented some financially than and And dedicated individuals. providing created

continue me of providers the In addition Board of privilege business through some on had provides that to near-term the to us weather serving I challenges, Directors, KEY’s to I the on industrial vantage I serving current lead a the our part also which phase. and of boards strong the healthcare see will point economy. the across country, leading the while with and technology And of environment a large recovery of in recognize underlying

teammates the committed our engaged our wrap confident to of a take very things and comment current on and and for our am indeed transition and the all who seamless. CEO KeyCorp's in on level me May company of stakeholders. leadership ultimately smooth will not with the our to Xst, our as transition. Let Chris all in been value only of I deliver assume next navigate and CEO role has our Chris and team are but fully up environment,

of me for the back the operator turn Thank let to call. the that, the with portion you. call Q&A And

Operator

Sandler. [Operator of go to we Scott ahead. go Piper Siefers line the And will Instructions] Please with

Scott Siefers

question. Thank you for taking the

So first, Beth, in congratulations and best wishes future. the

little XQ wanted future What would and take require quarters? maybe your just then to on anticipated question it's from just the cetera it reserve, reserve detail that the ask, appropriate in to maybe So in Don, repeat et a up. went most mind I you, the build level the contraction, GDP of please into unemployment, for follow of more assumptions CECL maybe

Don Kimble

as a to that be Moody’s a And from levels. our CECL in as high scenarios, in level the far our each quarter, inform our say also would assumed. And year, negative these unemployment recent the scenarios far severe in would reduction tried single reserve some but single the fourth this and from to digit we a unemployment then third of forecast the also include would Difficulty] GDP, assumed through and through GDP it's recovery be still only end increase scenarios difficult that in in quarter what use number those and of GDP time. as I in the the the high impact outlook range negative modest the as of be economic estimate the is in put impact, at have incorporate government, place to of fully the some we point [Technical are digit

increase gone significant reduction GDP this and X% as outlook X% as as both of levels really range from shown seeing the their the in a far severe far have to we’ve that outlook. would those experienced a in we have X% unemployment economic quarter, range the you're or where to to X% As that growth

results that. quarter I assess that don't return predict type that how to have a would to again assess better whether say that see to continue in position And not, throughout will to June up know wrap so as we be of we’ll but and or the to the

Scott Siefers

guys the flows I visibility seasonality what's largely actually deposit anyway. your I'm that they've think little in happening seeing. assuming unique maybe you're have of re-deposited, little you draws And a just final with credit maybe question, into line been but more

to for think tends of first guys. you be kind I So weaker quarter,

what's maybe color a so on from the little any it obvious outside So I just guess less going please? there, it makes additional

Don Kimble

Scott, are right. absolutely you

fourth If was to they go first knew that were you would by deposit you the quarter really they see on downward the in average first look early at fourth the deposits We from driven in temporary quarter. side, trend quarter that did. balances, out especially place quarter throughout significant and

As I to growth flows loan from seen February mentioned deposit end match now. on the call we've that of the

line that over replace billion to $X $X over about line customers. growth. time loan those for reinvested of We early good banks And we're month about saw April. our of were of or a billion liquidity into flows, billion we're percentage billion of and draws, back inflow period that's about of and strong and March so seen $X re-deposit borrowings deposit reason and facilities seeing the of of on $X used in draws why We've same seeing our commercial paper the deposit that growth for the the part

Operator

our from Alexopoulos ahead. question Please Morgan. is of with And line next Steven JP go

Steven Alexopoulos

Based want that now on programs maybe these any start I commercial select calling guys weekly in to doing. you're will segments, seeing sort XX magnitude you cash disruption where of of government if the out on give portfolios. have participating Can Slide us a sense monitoring the and you you are of the flow you're helpful of too? be

Don Kimble

far I real have seen including estate say than expected monitoring, flows we what those bit certain areas higher have areas, a are and as later to cash other industries, flows, ask bit would we activities. but might for I'll generally for As cash as little we Mark the little a to continue comment be commercial as far that

that of of through well through that and we mentioned and before have I far program, applications far funding, way we're the those stage. the getting loans so as XX% had already onto those and as our as approval approval over those SBA PPP the customers we As request on XX,XXX just through assistance

on Mark, higher additional flows, would anything insights add As else far on risk cash areas? as those you

Mark Midkiff

noted us XXX noted or I we've categories. think, of some that asking had approximately commercial to for that have level in customers you the an Chris come deferral

And couple been of comment that's billion so that I'd dollars. inside of a make

Chris Gorman

And flows things would this only I thing side is -- very sports, most always we have leverage the I would equation, from portfolio impacted. thing other always behavior, obviously, like we the The impact talk, entertainment, about leverage seen we only leisure, others talk about Chris. significantly some there’s the be restaurants, impacted on would portfolios, had. the of any talk add, of Steve, cash place travel, anytime necessarily of that the consumer obviously, wouldn't that lending, kind

Steven Alexopoulos

this you reserves? the are what calling these the us buckets quarter, slide, on the sense of given give out you're can And on specific increase large reserve reserves that the a

Don Kimble

if We in we we loan haven't by shown that the future can reserves deck, In do category. disclosures. reserves on those show categories. see add the slide our We’ll

to announced some insight And because other reserve benchmark consistent of as fairly good the so that's show compares they're we some for to to of that we've current just seen think loan category a it's that already. larger so, levels how compared I that to also and to get helpful with banks think what charge-offs far the by have peers,

Steven Alexopoulos

Beth, risk that spent credit many bottom, for on as the top credit here finally confident this years performer the to specifically? And you going aspects changing the Are credit including to top you a cycle through pretty last guys KeyCorp, come company. you're profile of several of

Beth Mooney

performance. then our for indeed we well balance profile as it PPP weather of I'm and top team, good and well as positioning here our apparently absorb on be are. being confident did and would that focus make And performance line of also in risks a extend can performer sheet as spend the to our what we with sure through to indeed And this tell its position will downturn, with and a and than our a this, of strength as both we a capital. did and couldn't the to through risk the support, highly could of credit we this that and company extending capital face and draws. the profile, our you that it support was our And of that our whatever indeed and importantly be lot liquidity median, we stewards balance customers financial downturn, indeed and downturn perform And ourselves both the with risk as future as and time program, better are company stronger this the prove marks sheet, portfolio a

Operator

Our question ahead. Stanley. line Ken Morgan the from of next is with Please Zerbe go

Ken Zerbe

an you've with starting maybe growth. something temporary sure of a Obviously, you've off larger a Thanks. conversations loan trending that's How this end balances draw strong. had quarters? period do with mean, I'm over you those of I some guess Is basis it down? really your next I really, borrowers. the couple just is got envision little more permanent?

Chris Gorman

you to As imagine whole period, through customers. time our can this of a been bunch I've talking

companies have of As referring it next lot first, markets continue relates significant that that to investment-grade in of and the getting a I of as to we're in to clearly a the taken But bond of quarters. these market, probably probably lot look metrics, stabilize you're larger a to, be whole deposits. by out for amount they obviously the couple

Ken Zerbe

collateral clearly that middle like you very versus many of terms your collateral some terms They on question draw against market that in downs. specific some know may draw many hear basis, I we then that borrowing in How XX% grade. borrowers said just borrowers? those they're defined maybe investment second not have those how have of And of, would or the of of like you are large But downs. guess agreements customers. the of I borrowing

Chris Gorman

capital. fact generate to So to on by constrained ability availability. draw receivables obviously base and be have grade additional biggest generate a the that Ken, definition, that large their are downs people by inventory would are borrowing to access investment in companies

Ken Zerbe

I loans, something the you for, are today, that question, just but next to they then are build materializing CECL or could trouble development how you troubled? couple And guys something being providing that or forbearance, quarters? reserves see reserving just so where that aren't for speak last we is is you classified your troubled over as mean into loans or

Don Kimble

as evaluating Our credits still that economic as side would as rating given the this those that with outlook that future for well. credit CECL those have. rated we in far we risk getting forbearance, though kind anticipated the risk we we will reserve, established reflected anticipate even appropriately commercial will having migration reserves And adjustment and and be CECL are be be on of those the

capacity, On that be bit bridge be consumer those might as as and some impact on little given many credits. are as little lagged more far a as it’d status bit the the it side based done challenging might be far of more more forbearance on of a those delinquency the on

Operator

And our of with question America of next Please is Erika line Lynch. from Merrill the ahead. Bank go Najarian

Erika Najarian

a the guide in Just results of at this DFAST question how potential terms a your should we wanted look to ask as last severity of about losses cycle.

reserve you test? and here? in from X% So, part the DFAST. negative you rate I'm a last Road DFAST, And in that And over loss this in quarter could that like see see XX two submitted saying, on credit last C&I. do as And that versus after as as recession and to your I'm Slide balance scenario is it be and something consumer last terms of rate direct Laurel nine of in portfolio? also out this actual company quarters And you closed wondering a X% tests, okay, positive playing question, taking KeyCorp your reserve one stress what it where an nine this over wondering simple what you your is loss that's implying over in according run to different both in sheet balances in date putting is losses

Don Kimble

a quarter to far quarter severely as just up of I It follow that that would just one, that, this to than $X the dire best And adverse in my XXXX during matter be that would try credit would as part have we on as economic fact. scenario fed this from we our I’ll offer just much more to submitted through time that have of billion an period. XXXX the about scenario period. scenario, had time would nine that what losses occurred

a take commitment look for loan billion. that for reserves that about allowance and you both totaled If the losses $X.X reserve loan at the total unfunded our we have,

are recognized that is in And combined about losses so XX% that. this of those

The biggest of impact period. that period. severely sustain difference on would It very and for but the have adverse they is assumed GDP would there time long then duration unemployment stress a

opposed that is impact. duration the Our important might've on just far of assumptions much type and losses as assumptions recovery start included. of is the consumer side more see especially that as to of that the in this that current V-shaped And recovery a so a we some we have year, it's that as much fourth and quarter shorter to initial

biggest the we're gap adverse So and I showing XXst. as as reserves that's what that would severely say far difference of as as scenario between March far as the

time that want and offer able portfolio. that right accomplish that's very seeing be As able customer that's component we portfolio, the far the on stress loan of that them the as continues expected now group the support I in to and we're performance strong we're seeing with any doctors to that, be content only to to and focused Road consumer Road And and a this so outsized that, loss the very be programs highly portfolio. pleased it, loss dentists. to that very period. helpful that Laura and of not through are direct And we bridge Laurel say base would overall And from that, for

Erika Najarian

compression reduction perhaps level And second -- late rate question of given that for is interest interest of quantify you margin magnitude is, the you first Could net the my second the expect in it quarter. quarter? help

Don Kimble

in minus the three to that components do interest basis have we should program income interest going be margin drive plus PPP in but there's that mind point compression. be that quarter, to negative expect net second about rate impact really X Keep or a For a north loan low up have fees rate environment. by a time X%, loans still just would it's which the in this is the that loan contractual with factor something margin, you us associated of of that that, the X% for on yielding little

potential $X And levels would robust and Second of liquidity mixes just probably to increased make have. cash the that in in funding billion what liquidity overall have we're the each and from north $X be billion $X.X we you of as billion. that that's currently said sure given to levels changes I maintaining night,

not on NIM, had on on NII increased pressure but that And NIM. pressure so liquidity put

we remaining of I would decline then low range points translate the still occurred said net basis the margin difference, And to interest to say that would rates because mid late probably our in be XX% in on point pressure rate that that change. basis on would north type XX points quarter. be deposit while of not And will the XX beta that that basis to down the

that some pricing the put coming will deposit near on of something that's margin as through. lagged see so term pressure impact we And

Erika Najarian

And What could I with there's of one clearly your please X sneak balance I'm is for a wondering demand significant equity the bank at if ratio And sheet. in common more, just X.XX. the there Tier amount comfortable offset you that you're of some to demand this ratio customers? do drawing can sheet mitigation in to this as is for And anything demand your of continues? from balance down terms RWA level

Don Kimble

the not those in far we coming increased what now, As seeing active we're as right this our that muted experienced first or draws highlighted compared And customers. loan quarter should from requests to through as well would commercial the Chris outlook, for this other we funding quarter. growth be the and say

sense a on seeing is in has risk-weighted that. nature that Second, program, of growth to strong we zero that loan put which fully-guaranteed shortened that the it any and and fairly term lot so component coming it, PPP a shouldn't in are from a pressure

the growth mortgage, Road. risk-weighted coming it's of loan seeing, that is which residential Laurel consumer about on then half half from we're other low asset and a also from And then

as the of some pressure as on basis growth is RWA, don't rapid did of those in over increase balances. we that this but the much end cost we XX period so saw just the because of points see quarter, And think what we last we'll RWA

as see an us don't impact for that we forward. going So

little say comfortable a below far the see bit that, we that targeted term level our that we'll can expectation monitor was it. as as would things what I I below what we at, are that but level. that’s slightly to are range, stress, had is little drop a that said when with But continue longer more

customers have projections And based and continue through capital support well. we so our to believe dividend and outlook our current do support to on current our we as that sufficient play earnings

it's would So, evaluate position think but we'll things evolve. good in there as we’re continue something that

Operator

to Pancari Please John we'll the Evercore go ISI. with go of line Next ahead.

John Pancari

loss of that you're XX% to other but reserve, XX% you to incremental also in of they've this reserve coming it, you about the color reserve earning cycle banks increases might quarters? crisis. Back the of this you talked in I know cycle how additional in thinking additions of calculated of expected higher when at quarters. would about terms just about content the you three next type potential the loan is that that Thanks. look been need that new in gave Can indicating I that also sizable couple level relative XX% of that your loss of you approximately likelihood than through the appreciate have rate talk the they about that you think taking loss Because size losses. size be season expect ballpark, that

Don Kimble

economy I having these that our to someone and recession, know to will for XXth. impact their provide on treasury, the impact on bring of And what that with continue to meaningful seeing and the needs are duration help the programs to ability the clarity from the between now don't we going the June from a provide happen be. what level have we some and kind wish Fed to Great pleased customers. going up we're support that question, forward, depth that all bridge and operate that of more what's think it others from couldn't back to could we help to But and of be recession

the forecasts about the probably you bit in recovery But at far April, look as as they to of these early out comments more have the economic are actual that the other come recession. opposed if negative, a as depth little more that

scenario And a U-shaped so are V-shaped. as going more toward opposed a to

And so continue we'll assess to to have that.

there early at to John in if of too I that more for just as much would to do reserve quarter, this think speculate the the see second negative in about change end to sorry at point us how economic could as that. of But to time. But time. forecasts we premature tell could that point reserves it be be additional it's pressure be on

John Pancari

you're know upside and healthy then loans PPP like amount that looks the program. the seeing might you've an a and the of appetite cited balance And I get there, of we

going fed that to on them expect is see So for and sell are demand its that plans greater their it off sheet? What the I balance Are assume your that got How your balance looking be facilities? to on overtime that. you're you for should those the market, be loans is going way secondary to going sheet? and we find to the to to

Don Kimble

think over And excited over express applications. we're One, interest least had at program is very understanding to outreach XX,XXX over program Chris and that early mentioned, I about efforts and had XX,XXX we some out we and and what the customers were in. customers as XXX,XXX we

they to be about weeks for that against get the should in and And way XX they from so of that's support a ask those percentage loans time as think be that And that customer at huge forgiveness position the say those those our pleased potentially to fairly of But we've base, if the loans, think would you looked we been program, have. life able a we very we that that. short.

in we our sheet. so and balance could we nature the think life And keep on be so short-term fairly it that will

funding mentioned generally flows, have if or those support But we part would those to as funding to And for as assets and strong As that of as to meet those fed the I provide then having our deposits sell those need before, see operational treasury, have order don't far plan. liquidity. to available sufficient needs any areas very us aren't provided additional assets.

Chris Gorman

Yes, could I just add. if

so program, moving. how this up back PPP country important to rallied which and get are We our around immensely proud the of team we is think

think client about teammates this the on than went Don and outreaches. massive XXX,XXX of came together If how timeframe. to had more support just mentioned XX,XXX working And We clients. of it, short program, proud I'm very our out really the you whole out really team these

some We a loans that really of process straight-through nine built us great of also or over enabled to processing years’ SBA couple weeks. XX basically digital worth

Don Kimble

the of SBA point, Chris, good a annual over with under this done XXX we've in little normally product loan week. applications in a at plus type It's and flow that for XX,XXX

Operator

Our from next Peter ahead. Wedbush go question Securities. Winter is Please with

Peter Winter

year? to And am wondering, I is the where the today, to fair like of because thought amount there I wondering fair assets amount in room fund loan securities ratio portfolio was you excess sit the to a LCR use re-mix a of I second help margin it on continue just as is to liquidity. the thought seems of somewhere the to the maybe own earning half growth, because

Don Kimble

been didn't the securities quarter. first you've any we but Peter, new here, reading our buy in playbook here

cash reinvest are of We some using in there loan the to flows growth.

to so us. clearly And that's we still think available

would of We of have now that we our XXX%. billion north $XX liquidity well LCR is over ratio that calculate

above us the we're even well and for it's of fed size would well a So, what north we XXX% have in that environment. range, in that bank target this would our

the especially of manage consider reinvestment could securities evaluate given our we opportunity south for continued for want investment will of those well rate and is. we overall how current So us, what to that the be to mix assets is the portfolio

Peter Winter

those rates? reinvestment are -- investment What

Don Kimble

off a X.XX% ago. be north is our that agency flow Yes, and short-durated in current considerably as and just The where as XXX maturing of we CMOs between down a X.X%, it of reinvestment tend have far securities. to will cash quarter fairly yield so somewhere from was today

Peter Winter

comments your crisis. peers perspective follow can And a and into a position, the into just then Chris going that certainly with could from from much capital just But some from perspective? about then a heading this do about just downturn up standpoint. downturn And credit you than better this you talk current opening a you changes best credit financial in versus biggest question, think the better the liquidity of remarks

Chris Gorman

just business. example, a At our would real in real couple estate business, X%-ish. a of So, I'll had point, give that at, book our if say construction a have years, that be we number back Take you would about you went loans. would Today, for things. estate have been XX third our real look estate

we losses our book most of at paper of amazing real an were was we which hold a of business markets don't in it's the where available companies. point, will CMBS Fannie, now that built have don't principally business. we incurred, take distribute our be that last avenues, is kind FHA, lot and the we to such that Right because decade, once estate take, And again. any that not to really risks it necessarily but whether want also the Freddie, ability a have We life

we've where because and times, these in good real that of even done most is Peter, job because on our interesting, stay a estate were. It’s I'll losses

reconfigured also with. business exactly We to do who wanted we

mortgage about what the or that really and multifamily in the reconfigured we're business, one complete groups disruption right of now is providers people our in agencies because our there in you spite If the premier think base. bank. we seeing of are there's two that out picked client of backlog the some our And want to in commercial that business, city, actually have the multifamily every we people growing is

some of we've what examples done. just So, that be would

risk. than is business before our exactly always book was it we grew generally leverage of, where is there's XX The ago significantly And XX%. other were are earlier, I where we today And bigger I'm focus thing years leverage by we proud are, where we a mentioned leverage we that really ago. a there's decade

able scale and those of clients, just real of the So, being notion it’s case in estate, a are distribute different of business. pick completely being paper, to targeted your examples. just this then whole lastly couple It's a whole concept the carefully to able

Don Kimble

experienced under One of complete time again and company is where that add through downturn. time both lending the to think say relationship only a would that that should and better overall last where much having strategy more thing I that the we subtle shifted time we this in well we've difference And primary bank. than Beth, you're not better customers downturn, via those think that And us or relationship the perform bank. relationship than position I shown relationship, what would they as will Chris I the it's

Operator

is with ahead. go McEvoy Please question next Our Stephens. from Terry

Terry McEvoy

the And program. does Don, on about you you yield. because in of just loan up Could response it had question PPP into follow question, average process a fee kind fee? impact that the I size, earlier the added talk the an that to

run or income? income will wanted just included through whether I to it fee income like you if in it's the sure that's in interest suggested, be come where through So, quarter, make going statement second may the

Don Kimble

As as before, we the as XX,XXX billion applications, $X got mentioned far there. we've about loan value about

So something north of $XXX,XXX per size. loan average

fall customers been to it's middle so, even broad of bank small level. of business our a that's our under some to going from banking, mix XXX still And banking accounts customers, market head business that count

results. very And that's us program for those with huge and so, pleased been a

as we life take we fees of far through be it As the that those through would expect to amortize do net-interest the and that those is loans, contractual the relying years. margin on those two which

at that forgiven time be unamortized portion would as income And taken prepaid, the so, well. or those of would as in be fee that

Terry McEvoy

lending program. I balance going street what guess the growth forward? sheet main that that mean ask and could you for then about getting ahead program Are I'll And of

Chris Gorman

with I'm others parcel proud in to fed we of KEY, been the fact industry, and along at street the many and the structure the have with program. working that main part others

going discussion. access look need about think have we main are clients of incremental have helpful But some really and to street programs, the capital. necessarily it's additional to billion. that the program, gotten a main the they wouldn't think it lot and street at it's for other $XXX very helpful. It aggregate We team going hasn't to We of you of be some in whole to around be our a if some But they funding.

not it we as hard speak. working on So, inconsequential. We're it's

Operator

Bill to And Nomura. ahead. line with next Please go go Carcache we of

Bill Carcache

wanted follow Don, CECL John's I regarding to assumptions. up question your on

more this make March have magnitude GDP degradation and decline from of that incremental a comments recently just clear anticipating U-shaped expected, there's of and than quarter, some it heard the more originally as outlook the sharply post rising as going the lots that Your without other in but We've about uncertainty, getting reported banks very expecting now direction. into XXX already recovery with V-shape recovery. even to unemployment talk

reserves in QX. the been those incremental changes, suggestion they'll book there given has need that so, And

increases last in So, for figures increases elevated have hold? few to if is, over guys I many negatively Thursdays in in guess claims initial the those additional would allowance, April. book you Are the contemplated are unemployment the direct or need that you those your reserves question surprised

Don Kimble

as say, and the highlighted As I'm to aware, happen April too that, Xst. as But, I to our quarter of would as far the assessments connection as adjustments unemployment make economic have assumptions, But to negative there. we that the been really and hadn't we're the to project in initial as end again seen early as since any the again near-term any new we're as outlooks to we I wait closer that impacts GDP far till of you've scenarios have assessment. get we just used apologize, I others the haven't I with way Moody’s June what's XXth going outlook. considered far think to try to just,

have economy be starts return at I bridge those as to And this a start that, is these really programs this environment. far to to work informative, how We're and hitting as how historic start been quickly support. very a period through from as states to here, recover which think level counties states see implemented customers and will we within that how help the

any where we this I might more answer. see insights of to a could out we before need here. provide And so you think give I I go more wish it from to as direct But some play

Bill Carcache

dividend, some you prudent would current the that and duration prolonged. is on back us banks former their guess of dividends that high cut on the it halt to then would profile the its to what a take dividends? question separate for Can extent And it for KEY I have be downturn suggested regulators the to frame for the

Don Kimble

and reported takes X% we so with as in as our the We tier assess depth current as the of based assumption see far $XXX utilization. scenario only current one million I dividend the that at on we to that that and capital quarter a to the our million mentioned that's or And that our $XXX before, equity duration far that downturn common roughly for is that continue as will the level. adverse continue dividend what the severely ratio

And shareholders. also that's so a organization. it's percentage retail very shareholders not It's high and far earnings capacity as important as the of our especially our to something the overall

consideration. well that outlook maintain we're current We all that to positioned So that take we'll our on into to believe assessments. based continue and

so as that see the to and coming that don't economy point. we through risk, but trending at we'll get quarter this And we reevaluate continue see at beyond to as

Bill Carcache

the own? So dividend, whether you when to to downturn. the that extent have were the to freedom that that to this make or be the banks you decision prolonged a Do should think think not is individual prefer over spend the the across to dividend, you than urge their is one would same on that more entire so in regulators having rather suspend boat sort cases the off industry Or banks. banks broadly of

views curious Just your what are?

Don Kimble

think that's capital the a of reason also banks their that all for part our our to need if positioned well and common we're not have talk position last support to share we that portion But all years. buybacks levels continue our do continue to liquidity over you that. support if to times customers the think few appropriate of doing cut significantly we dividend. out I be and banks, the significant have and Most was the of returns to increased able in occurred where most since have And crisis. capital to our

portion that so been has already And stopped.

regulators that too they suspend are they that today point most support things to that that so based maintain. the well we that But a may based forward, think we believe continue the large in dividend come to I are seeing we're economy to we're do if And banks look levels as would recommending dire. where the the banks on our positioned capital on what those believe and that

Bill Carcache

echo spent certainly Thank let you we me echo, as the enjoyed I’ve And well. and so everyone’s Beth, much. time congratulations together

Beth Mooney

you, Bill. Thank

Operator

question is Usdin next from with Our ahead. Please Jefferies. go Ken

Ken Usdin

bit detail Don, that the little of wondering some guidance. just on you could made give the points a you if in more us

prepared the talked about of couple in this a quarter. your extra talk remarks, about you you negatives when all, non-market of revenues, first So,

when should as of thinking you're little be dings well obviously slightly first the those as marks? off we So, quarter, much fair adjusting for value lower for about the as

Don Kimble

would Yes, for to as are snap more although line will nicely already expect the dings. already some of that credit spreads $XX of we and marks that We little million million by support. will down reserve And more operating that if one $XX so, fair end that in come lease opposed since opposed March far yesterday the be have derivatives provide as value the as the and than was XXst see mentioned one-off of quarter not adjustment, forward. of would a we an we adjustment would think the going as type the additional we as time, ding to that something customer

asset you If and account that investment and of is trading of trust at it to within of about commercial activity half activity, look revenue categories, is brokerage that. the and/or some half about other services, related values

transaction see category It's payments at come And would the declines did we services I card, and and so, by this to which merchant would and quarter, of revenues little end impacted a XX% quarter. card related little were we tied say down that of XX% those elevated of the first that bit. of those see to about cards XX% revenues. purchase levels that volume a probably levels are credit

quarter. residential fee $X by some the many categories of impacted the negatively could income But So, trends impairment. into we of second of kinds increase, would initially and/or MSR stability see mortgage expect other was but revenue those million continue even

right it first was X quarter. $X the which going billion, pipeline what times into now Our at is is sitting

so, And revenues. should in see we those some ramp up nice

for we that we the of mortgage revenue down but why some offset see fee that's other and slightly, being categories so, And residential some other benefit activity of some reflecting think level would of that categories. by the

Ken Usdin

understanding point to You've areas? earlier Obviously, your the investment on about the then side know improved. certain seen your Maybe really business just your have CRE and markets in and to about those too one product what's in you it’s got opening really We've places. the speaks the early. presumes markets so And you marks, talk then verticals. bank, areas product value happening that your can and fair just some

hearing about just are So about with the you're while customers talk that moving dynamics on? are to whether pipelines talking maybe early, the can that regards you through

Chris Gorman

pipelines whole an What most M&A world is effect syndication, has transactions So transaction knock-on as impacted pre our time a price that of can you complete we our COVID-XX, a good Obviously, the M&A what business very and now across when also board. the because in not we has which had in described the discovery the activities. right delay we is in of many it's we finance advise. the

gone, So and deep the trying think that those which how that question come figure don't point, I out they is, but back. is everyone long, to are deals Don's goes do back is right And to when now. how

our of forward. be some I that verticals heavily well invested back, step to we think positioned we've just Now in, as go will

number If facilities-based you care. think for advisor probably example about health the care, our Cain one Brothers health platform is for

next lot has of I been we've times we I X X KEY, consolidation The speak as times out growth rate digital come rate to as of see to money we -- is I where area our the for you're COVID-XX. a have And this. can know and of invested going customers think of massive time prior technology.

And notion so, to area software-as-a-service, going is an the of I the goes whole be whole of well. notion technology, that think really

an to Another that And don't we're I going have is impact. is focused area much of think where renewables.

and I push and wind in those think the at for we're a strong. if will remain think North leader America, both you look solar, I

from of a that a a So, perspective. a perspective and you vertical both gives flavor little product maybe bit

Ken Usdin

of to first related Is Or year? you're on the good side, the slower markets to talking there stable. uncertainty also quarter hold what expenses doing other things the of one the the Thanks line that are best on then the you'd the kind there? and of year that Beth. underneath part about continue just to you're and and already revenues again really luck, guys, last start done of quick And reflection so result one

Don Kimble

from other And supporting move some whether seeing team. outlook we're of would costs including expense the because be initiatives expecting help And expense to paying increased some we but branch from the that down. reflects perspective, revenue of also and that what or expense the include their many to I distribution continuing some a not seeing the levels provided what required to our outlook only say focus shutdown some team branch a of members current we’ll to the are for efforts, it's on programs be operating application additional in current responsibilities, levels out to we're for that that also are incentives additional others. of our employees we're

some where third associated on-shoring that need costs with us provide able support had to that in And party it's we've areas also we some additional the some haven't to we've some up there. and requiring resources step add been seen this, activities certain to vendors

so of expense are And stable outlook. each those that in reflected relatively

Operator

next from is ahead. now question Our go with Foran Brian Autonomous Research. Please

Brian Foran

beyond of that. it all to north uncertainty of little investment million with as whatever losses XXX. guess, like down think collapsed, a XQ being you it for $XX your through differences ‘XX. the the charges earnings was And pointing during your bigger PP&R, pre-provision the tough that the was one crisis Don, the in importance And I ability of And that thinking kind guess now KEY. of seems so of your about chew things this number, they comments maybe fair are? comments over of PP&R you're of ultimate got the picture even about the that’s guess, crisis about is just versus your for with then quarter kind of number was some And banking, higher the million in I the in the all $XXX just even I I really building terms much to

Don Kimble

a operating a That’s in core more improve of our to or been maintain approach. of into see leverage our shift to a of to focus our continue is that positive performance, balanced improvements core deliver portfolio

of as capital did clearly and of that dividend overall before, us percentage that what higher so as to our businesses increased today far critical have retail we our to we going those is oriented supporting I And are level agree forward would important PP&R than us. and position. that

environments, we so that levels of capital the stressed types cost showing And increased in able still to to occur maintain of we're PP&R that's be to environments. that those might type the why in an of based support believe on credit we strong are actions even outlook. able And those

Brian Foran

remind maybe is one about excluded bit for of the reasonable would that hedges How then ratio, flexibility for to would whether CET-X, forward, needed so hedges think securities capital you CET-X little the trajectory follow-up going be And would us, that's the if can as more right. see, and OCI the we much all from securities it's the and you? what gains access the if a or you ballpark give a gains you flexibility

Don Kimble

The capital the for OCI backed purposes. majority is of out

gains of And are in net of flexibility up to. lot we us able we so, ratio that sitting a those that give Tier-X by to some positive would a security equity to manage if common wanted be realizing

or we there. oftentimes, that in future liquidity see does provide it Our flexibility that be out when challenge earnings don't want would perspective degradation a securities some us lower today, but the earnings the securities for for it to and yielding do would through swap you'll you

Operator

next ahead. is Please UBS. question go Our with Saul from Martinez

Saul Martinez

all, miss we left best and with working First of you. Beth of will

of measure maturities because is fundamentally recently very my sort on not, a of your of this reserve assumptions a corporate is that too it's related DFAST they're it's in broader best downside stress a to I'll guess useful capital of highlighted your scenarios CECL they're been have adequacy to of fundamentally your And at in asked, there in point get your case period I risk a and test which a until different most And beyond different perspective it's time construct. what of hence and much of of is is book, and conservative, to so economic of sort but draw maybe quarter those for to guess you it's is terms loss much, nine severe I a be, estimate it's literally. up assumptions, DFAST a asset the CECL Don results over. is and or questions And differences gauge from asked sort DFAST in bit on for lot more CECL shorter as in taking it's construction question. look you’re exercises, a reserving Don a absorbing of obviously of where So, and a a growth, scenario estimate this different and whether where Mark. the a contract follow question, but little the response like And is and reserves I'd losses meant line Erika's which question, will

like where should and you So, severe there of risk use taking $X in that is is as sort a reserves in of of guess more, how we even of as I gauge to results mentioned too a scenario? my question a those literally sort to gauge the really a go billion

Don Kimble

your CCAR think that you've can. purpose for I the I one with question the is But observation the I distress answered than capital. agree better Saul,

And in higher some levels. would current extended lost include of models, so which to may might historic not include would testing commercial the loss are utilization isn't rates the some that as environment or adjustments period for using that fed time current of some that draws, assumptions loan the present as would you the where the for included continuing their far include for be portfolio reflective the of data The content see. compared what an elevate

subjected only the therefore you based maturity, its for the could level it economic to be whereas loan it would rolled on CECL, get of through you of CCAR provide the the reserves for scenario. future nuances assume Another over loans in loss and those

be through. that as in people announced from we're how today So, over CECL what seeing as And think the types in expected far using they variability and of board it's some that the the the about as all the have far those outlooks, and variability come the do the to challenge. as that I'm for I the a and than assume say economic are a out different kind impact surprised reserves. estimates the have would of so would revert have thought I reasonable would supportable announcements the I could banks as even far models, wider numbers the the period if come you of what as change ranges back you that tightly norms, earnings

worse, helpful I it's get so the as And don't that's we would think predictive benchmark as the the far as as would but it's Difficulty]. that reserves far I that [Technical see think necessarily if economy be

Saul Martinez

just, you on just was I the applicable. wanted the bit it, follow-up guess, just I little I verification way thinking about quick guess of slide a I is was a with and I broadly these that's thought that risk clarification, is A portfolio that portfolios. risk are the segments there there? portfolio, with how some at in right at overlap of that loan other leverage much

Don Kimble

in probably commercial insights there's I there say say would shown. generally would any that very would you book categories nature as that our there. overlap I are other industrials little that leverage have Chris, to more is opposed the

Chris Gorman

and deep a of lot up overlap. that strongly with leverage we would lines there not of very be book in very, are Our so verticals

Saul Martinez

how gauge guess any, there on whereas those water. variance tours assessment, travel, a hotels, there's airing I more buckets, like of risk to a these some you travel And these, for just for hotels, those like for fairly kind risk within buckets, a the consumer that is discretionary way the those then example, granular that your buckets example, there's highlighted? within broad are of parts categorizations and for big and like much is there

Chris Gorman

broader categories. There some are

buckets. large if more we'll believe more or as For have the But areas that portion clarity and see so a XXX small the hotels, of can dollar we far level, peers risk between very there as on I been is billion granular of additional provide where portfolio. around overall example, number But fairly these many of and a those are are our coming granularity assets. specific some

Don Kimble

we And it. that provider we so can have

Operator

our ahead. with be And RBC. go from question line the Gerard Please our of Cassidy final will

Gerard Cassidy

Obviously, peers. high the parts of us. know with of share your can certain you maybe nature about we risk portfolio and Don, your

types credits, a energy the you in table expect? of close this extends making out off portfolio other You are going you hotels and if in the all moment. just on leisure what's really take us that case any focused of about for of touched on, that downturn if areas on are What than longer you handle sure the keep on it

Chris Gorman

where anything to always leverage. pandemic. on there's lot a new foremost first and focused isn't of This the We've

so leverage. the those very always any And those I when where places there’s which here it's we portfolios, time. for monitoring a indicated But economic We've for you the about our very, it's long two and are real of areas two us, leverage leverage. with are and estate those book, financial closely also think stress, our very been start

Gerard Cassidy

the involved rules then And with for some us call on involved of getting we this lending subsequently U. around or and has banks, been while, the then a the remember changing Government on and S. the getting in banks.

happened But half see new get, and there that safeguards of working Everybody's program, putting any year they pushback putting you in What TARP or guys how was the industry to where made how cyclic with rules you're government, we're to let's get which some lending You for program your but PPP Capital program not from working you're street this probably to you're get course half the twice of and customers, how industry, that changed helping say, and a and are kind get your just in with you the this TARP. the of main year prevent up to on the out Tri from crisis after had place now. might may the a by what recall we now, and is mistakes going great. a hard as done. that fiasco,

Chris Gorman

need First billion, not to be of our perfectly obviously we together there clean. a we need of to the support out and helping And another weeks that’s program And clients there all, them question. posture matter great put billion when and to $XXX was talking them that this going in we be Gerard, to it's think period. a $XXX there to it's our through is

So, was you from said that, add things spent kind that? indemnification, reps our like Don, warranties also principle. do customers. guiding Having time to want the and on that of to we

Don Kimble

No, you're Chris. I right, think

send homework, app and from put have we are careful very the place. even underwriting done appropriate in the been approval SBA we've we've So before in we based that our the done that standards for on

primarily of rules And so, is guidelines But to address ups best be making area we ramp significant and safeguard the to and are that's the are that our part our able to been our effort on following, understanding it's interpretation that there. out and that. a sure team's

help to from done the again others that that And fed, bridge. So to we we way that through the provide want being that from the customers best trying our appreciate from everything we that's support treasury, can. are

to subject risk we And just right additional with want not but the it hindsight dust hopefully so do after the and settles. ourselves

Gerard Cassidy

to congratulations finally, in leadership Beth in and And great women then luck good run strong just providing adventures. KEY your and on your future To you. general, and Thank

Beth Mooney

Thank you you much, of all very and to so Gerard, today.

Operator

turn closing to I'll it that, any for the with back And company comments.

Chris Gorman

today. call our in participating for you thank Again,

If any team you. can them Thank remarks. follow (XXX) up our you you relations have questions, to This concludes XXX-XXXX. investor our direct

Operator

for your that Thank participation. conclude and your Ladies gentlemen, you does conference.

may You now disconnect.

KeyCorp (KEY) 16 Apr 202020 Q1 Earnings call transcript