Company: KEY-PI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048757
Chunk: 262

Company: KEYCORP /NEW/
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 262
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 of hedged item (a)Hedge accounting basis adjustment - active hedgesHedge accounting basis adjustment - discontinued hedgesInterest rate contractsLong-term debt$9,436 $(200)$(4)Interest rate contractsSecurities Available for Sale(b)12,407 (113)15 December 31, 2024Balance sheet line item in which the hedge item is includedCarrying amount of hedged item (a)Hedge accounting basis adjustment - active hedgesHedge accounting basis adjustment - discontinued hedgesInterest rate contractsLong-term debt$10,249 $(490)$(4)Interest rate contractsSecurities Available for Sale(b)12,097 5 17 (a)The carrying amount represents the portion of the asset or liability designated as the hedged item.(b)Certain amounts are designed as fair value hedges under the portfolio layer method. The carrying amount represents the amortized costs basis of the prepayable financial assets used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the relationship. At September 30, 2025, and December 31, 2024, the amortized costs of the closed portfolios in these hedging relationships was $6.1 billion and $5 billion, respectively, of which $4.5 billion and 4 billion were designated in a portfolio layer hedging relationship. At September 30, 2025, and December 31, 2024, the cumulative basis adjustments associated with these amounts totaled $44 million and $41 million, respectively, which is comprised of $59 million and $24 million in active hedging relationships and $15 million and $17 million for discontinued hedging relationships.Cash flow hedges. During the nine-month period ended September 30, 2025, we did not exclude any portion of cash flow hedging instruments from the assessment of hedge effectiveness.Considering the interest rates, yield curves, and notional amounts as of September 30, 2025, we expect to reclassify an estimated $92 million of after-tax net losses on derivative instruments designated as cash flow hedges from AOCI to income during the next 12 months. In addition, we expect to reclassify approximately $3 million of net losses related to terminated cash flow hedges from AOCI to income during the next 12 months. These reclassified amounts could differ from actual amounts recognized due to changes in interest rates, hedge de-design