Company: KEY-PI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048757
Chunk: 32

Company: KEYCORP /NEW/
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 2
Chunk 32
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26

Figure 12 shows loans that are either administered or serviced by us, but not recorded on the balance sheet; this includes loans that were sold.

Figure 12. Loans Administered or Serviced

Dollars in millionsSeptember 30, 2025June 30, 2025March 31, 2025December 31, 2024September 30, 2024Commercial real estate loans$569,430 $576,703 $572,449 $557,633 $557,387 Residential mortgage11,440 11,383 11,352 11,344 11,303 Education loans161 170 179 189 199 Commercial lease financing1,815 1,815 1,868 1,735 1,808 Commercial loans585 589 596 603 617 Consumer direct273 290 307 328 347 Consumer indirect122 174 239 319 412 Total$583,826 $591,124 $586,990 $572,151 $572,073 

In the event of default by a borrower, we are subject to recourse with respect to approximately $8.0 billion of the $583.8 billion of loans administered or serviced at September 30, 2025. These are primarily associated with commercial real estate loans administered or serviced. Additional information about this recourse arrangement is included in Note 16 (“Contingent Liabilities and Guarantees”) under the heading “Recourse agreement with FNMA.”

We derive income from several sources when retaining the right to administer or service loans that are sold. We earn noninterest income (recorded as “Consumer mortgage income” and “Commercial mortgage servicing fees”) from fees for servicing or administering loans. This fee income is reduced by the amortization of related servicing assets. In addition, we earn interest income from investing funds generated by escrow deposits collected in connection with the servicing loans. Additional information about our mortgage servicing assets is included in Note 8 (“Mortgage Servicing Assets”).

Securities

We manage our securities portfolio according to the following priorities: 1) store of liquidity, 2) interest rate risk management tool, and 3) source of earnings. In keeping with the first priority, the portfolio provides securities to meet our pledging requirements. Our securities portfolio totaled $48.0 billion at September 30, 2025, compared to $