Company: KEY-PI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048757
Chunk: 156

Company: KEYCORP /NEW/
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 1
Chunk 156
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 31, 2023ProvisionCharge-offsRecoveriesSeptember 30, 2024Commercial and Industrial $556 $336 $(279)$46 $659 Commercial real estate:Real estate — commercial mortgage419 (41)(22)2 358 Real estate — construction52 12 — — 64 Total commercial real estate loans471 (29)(22)2 422 Commercial lease financing33 (3)(6)5 29 Total commercial loans1,060 304 (307)53 1,110 Real estate — residential mortgage162 (53)(2)4 111 Home equity loans86 (14)(2)2 72 Other consumer loans122 49 (49)6 128 Credit cards78 26 (35)4 73 Total consumer loans448 8 (88)16 384 Total ALLL — continuing operations1,508 312 (a)(395)69 1,494 Discontinued operations16 (1)(3)1 13 Total ALLL — including discontinued operations$1,524 $311 $(398)$70 $1,507 (a)Excludes a credit for losses on lending-related commitments of $16 million.As described in Note 1 ("Summary of Significant Accounting Policies"), under the heading “Allowance for Loan and Lease Losses” beginning on page 112 of our 2024 Form 10-K, we estimate the ALLL using relevant available information, from internal and external sources, relating to past events, current economic and portfolio conditions, and reasonable and supportable forecasts. In our estimation of expected credit losses, we use a two year reasonable and supportable period across all products. Following this two year period in which supportable forecasts can be generated, for all modeled loan portfolios, we revert expected credit losses to a level that is consistent with our historical information by reverting the macroeconomic variables (model inputs) to their long run average. We revert to historical loss rates for less complex estimation methods for smaller portfolios. A 20-year fixed length look back period is used to calculate the long run average of the macroeconomic variables. A four quarter reversion period is used where the macroeconomic variables linearly revert to their long run average following the two year reasonable and supportable period.  We develop our reasonable and supportable forecasts using relevant data including, but not limited to, changes in economic output, unemployment rates