Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 115

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 115
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 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 June 30, 2025, and December 31, 2024, the amortized costs of the closed portfolios in these hedging relationships was $5.6 billion and $5 billion, respectively, of which $4.2 billion was designated in a portfolio layer hedging relationship for both period ends. At June 30, 2025, and December 31, 2024, the cumulative basis adjustments associated with these amounts totaled $38 million and $41 million, respectively, which is comprised of $54 million and $24 million in active hedging relationships and $15 million and $17 million for discontinued hedging relationships.Cash flow hedges. During the six-month period ended June 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 June 30, 2025, we expect to reclassify an estimated $157 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 $3 million of net losses related to terminated cash flow hedges from AOCI to income during the next 12 months. These reclassified amounts could differ from actual amounts recognized due to changes in interest rates, hedge de-designations and the addition of other hedges subsequent to June 30, 2025. As of June 30, 2025, the maximum length of time over which we hedge forecasted transactions is 4.26 years.The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the three- and six-month periods ended June 30, 2025, and June 30, 2024.Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationshipsDollars in millionsInterest expense – long-term debtInterest income – loansInterest Income - securitiesInvestment banking and debt placement feesThree months ended June 30, 2025Total amounts presented in the consolidated statement of income$(198)$1,443 $411 $178 Net gains (loss