Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 206

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 206
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 and “loans, net of unearned income” on our Consolidated Balance Sheets. Of the total balance as of June 30, 2025, $169 million related to the purchase of senior notes from a securitization collateralized by sold indirect auto loans. Additional information pertaining to our other unconsolidated VIEs is included in Note 13 (“Variable Interest Entities“) under the heading “Other unconsolidated VIEs” on page 158 of our 2024 Form 10-K.Other unconsolidated VIEsDollars in millionsTotal AssetsTotal LiabilitiesJune 30, 2025Other unconsolidated VIEs$607 $— December 31, 2024Other unconsolidated VIEs$733 $1 

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12. Income Taxes One Big Beautiful Bill ActOn July 4, 2025, new U.S. tax legislation was signed into law, OBBBA, which makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025. In addition, the OBBBA makes changes to certain U.S. corporate tax provisions, but many are generally not effective until 2026. Key is currently evaluating the impact of the new legislation, but does not expect any material change to our ongoing tax rate or any material impact on our results of operations.Income Tax ProvisionIn accordance with the applicable accounting guidance, the principal method established for computing the provision for income taxes in interim periods requires us to make our best estimate of the effective tax rate expected to be applicable for the full year. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes.The effective tax rate, which is the provision for income taxes as a percentage of income before income taxes, was 21.4% for the second quarter of 2025 and 18.5% for the second quarter of 2024. The effective tax rates were less than our combined federal and state statutory tax rate of 24.2%, primarily due to income from investments in tax-advantaged assets such as corporate-owned life insurance, tax credits associated with low-income housing investments, and periodic adjustments to our tax reserves.Deferred TaxesAt June 30, 2025, we had a net deferred tax asset of $1.3 billion, compared to a net deferred tax asset of $