Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 24

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 24
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Average loan and lease balances decreased $161 million, or 0.2%, compared to the second quarter of 2024, driven by a decline in commercial real estate loans and commercial lease financing

•Average deposit balances decreased $1.5 billion, or 2.6%, compared to the second quarter of 2024, driven by a reduction in higher-cost client balances

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•Provision for credit losses decreased $3 million compared to the second quarter of 2024, driven by a lower reserve build as changes in the portfolio mix offset economic deterioration, as well as lower net loan charge-offs 

•Noninterest income increased $61 million, or 17.1%, from the second quarter of 2024, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees

•Noninterest expense increased $18 million, or 4.2%, compared to the second quarter of 2024, driven by higher support and overhead expense 

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Financial Condition

Loans and loans held for sale

Figure 7. Breakdown of Loans at June 30, 2025 

(a)See Note 3 (“Loan Portfolio”) in Item 1. Financial Statements of this report.  

At June 30, 2025, total loans outstanding from continuing operations were $106.4 billion, compared to $104.3 billion at December 31, 2024. For more information on balance sheet carrying value, see Note 1 (“Summary of Significant Accounting Policies”) under the headings “Loans” and “Loans Held for Sale” starting on page 110 of our 2024 Form 10-K.

Commercial loan portfolio

Commercial loans outstanding were $75.2 billion at June 30, 2025, an increase of $3.3 billion, or 4.6%, compared to December 31, 2024, primarily driven by increases in commercial and industrial loans.

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Figure 8 provides our commercial loan portfolios by industry classification at June 30, 2025, and December 31, 2024.

Figure 8. Commercial Loans by Industry 

June 30, 2025Commercial and industrialCommercialreal estateCommerciallease financingTotal commercialloansPercent oftotalDollars in millionsIndustry classification: Agriculture $902 $101 $78 $1,081 1.4 % Automotive 2,322 583 1 2,906 3