10 Best Local Bank Stocks to Buy

8. KeyCorp (NYSE:KEY)

Number of Hedge Fund Investors: 41

KeyCorp (NYSE:KEY), through its two segments, Consumer Bank and Commercial Bank offers retail and commercial banking products and services in the US. In the latest development, KEY opened a new branch in New Port Chester. It has also financed a couple of affordable housing projects in Ohio.

KeyCorp (NYSE:KEY) reported an EPS loss of $0.28 in Q4 but has an adjusted EPS of $0.38. It is one of the fastest-growing local banks with a y-o-y revenue growth of 16%. The outlook for 2025 looks extremely positive with a projected increase in net interest income by 20% while the expenses are set to rise by 3-5%. The high-growth rate in 2024 did not deteriorate the credit quality with net charge-offs lower by $40 million compared to the previous quarter. With a strong capital base, KeyCorp (NYSE:KEY) expects commercial loan disbursement to rise by 2-4% in 2025, with further investments in wealth management, investment banking, and technology.