Company: KEY-PI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048757
Chunk: 102

Company: KEYCORP /NEW/
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 2
Chunk 102
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 plus or minus adjustments due to observable orderly transactions. Impairment is recorded when there is evidence that the expected fair value of the investment has declined to below the recorded cost. At each reporting period, we assess if these investments continue to qualify for this measurement alternative. At September 30, 2025, and December 31, 2024, the carrying amount of equity investments under this method was $430 million and $394 million, respectively. We had no adjustments or impairments for the three months ended September 30, 2025 and less than $1 million of impairment for the nine months ended September 30, 2025.Quantitative Information about Level 3 Fair Value MeasurementsThe range and weighted-average of the significant unobservable inputs used to measure the fair value of our material Level 3 recurring and nonrecurring assets at September 30, 2025, and December 31, 2024, along with the valuation techniques used, are shown in the following table:Level 3 Asset (Liability) Valuation TechniqueSignificantUnobservable InputRange (Weighted-Average) (a), (b)Dollars in millionsSeptember 30, 2025December 31, 2024September 30, 2025December 31, 2024Recurring    Loans, net of unearned income (residential)$10 $10 Market comparable pricingComparability factor74.30 - 99.00% (84.62%)68.00-95.00% (77.48%)Derivative instruments:Interest rate3 (4)Discounted cash flowsProbability of default.02 - 100% (4.60%).02 - 100% (5.00%)Loss given default0 - 1 (.500)0 - 1 (.500)Insignificant level 3 assets, net of liabilities(c)3 2 Nonrecurring   Collateral-dependent loans96 152 Fair value of collateralCredit and liquidity discount0  - 100.00% (33.00%)0  - 100.00% (33.00%)Loans held for sale3 — Market comparable pricingComparability factorN/MN/AAccrued income and other assets: (d)OREO and other Level 3 assets9 14 Appraised valueAppraised valueN/MN/M(a)The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value