New Allocation Will Benefit Low-Income Communities, Raises KeyBank's Total to $330 Million CLEVELAND, Dec. 16 /PRNewswire-FirstCall/ -- KeyBank has been awarded $50 million in New Markets Tax Credits (NMTC) from the U.S. Department of the Treasury as part of federal tax incentive program that encourages increased lending and investing in low- and moderate-income (LMI) areas. The new allocation is KeyBank's fourth, and it raises the bank's total amount received to $330 million since the program's inception. "This allocation confirms the Treasury Department's confidence in KeyBank as a strong bank with a commitment to serving low- and moderate-income communities," said KeyCorp National Sales Manager, Community Development Banking, James Poznik. "We welcome this new allocation because it expands KeyBank's opportunities to enhance the vitality of our communities in challenging economic conditions." NMTC recipients such as KeyBank determine which businesses and projects to invest in or lend to with the funds it raises with the New Markets Tax Credits. Key will use the credits to support small business lending, community commercial real estate and financial services counseling in qualified LMI census tracts throughout its 14-state retail presence. New Markets Tax Credits allows the recipients to reduce their interest rates on loans to businesses and enable projects to go forward in qualified areas. "These new tax credits will provide a significant infusion of investment capital for community revitalization projects," said Poznik. "They will enable us to go beyond traditional resources to raise additional capital for the development of projects that would otherwise not receive financing," he added. "When we can provide more creative, flexible financing solutions for business expansion in low-and moderate-income communities, this creates jobs and provides services to areas that need them." KeyBank plans to build on its existing partnerships with community development corporations and economic development financing programs to best leverage the dollars in the communities the program is meant to serve. Congress authorized the NMTC program as part of the Community Renewal Tax Relief Act of 2000. In addition to receiving $50 million in New Markets Tax Credits, KeyBank was awarded in 2009 an "outstanding" rating by the Office of the Comptroller of the Currency (OCC) for exceeding the terms of the Community Reinvestment Act (CRA). Enacted in 1977, the CRA requires banks to meet the credit needs of low- and moderate-income communities across America. Key is the only national bank among the 50 largest to be rated "outstanding" by the OCC seven review periods in a row. "We have developed a business model that is both of service to the community and viable for us. We meet our compliance requirements, but then consistently aim to go beyond compliance to full commitment," said Bruce Murphy, president of Key's Community Development Banking segment. "In the end, we strike a balance between 'mission and margin'." Beyond an innovative approach to the consumer, KeyBank brings both debt and equity investments to commercial economic development projects, to stabilize and revitalize neighborhoods and provide affordable housing. Those investments include construction lending, permanent financing, working capital lines, lines of credit, tax credit financing and equity investment. Currently, KeyBank has $2.2 billion extended in underserved communities throughout its 14-state footprint. About KeyCorp: Cleveland-based KeyCorp (NYSE:KEY) is one of the nation's largest bank-based financial services companies, with assets of approximately $97 billion. BusinessWeek Magazine named Key the top bank in its Customer Service Champ 2009 edition, ranking Key 11th out of the top-25 companies that include many known for their customer service acumen. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. For more information, visit https://www.key.com/. DATASOURCE: KeyCorp CONTACT: Marylee Gotch, +1-216-689-5254, Web Site: http://www.key.com/

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