Company: KEY-PI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000091576-25-000058
Chunk: 51

Company: KEYCORP /NEW/
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 2
Chunk 51
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. The scorecards are embedded in the application processing system, which allows for real-time scoring and automated decisions for many of our products. We periodically validate the loan scoring processes. 

We maintain an active concentration management program to mitigate concentration risk in our credit portfolios. For individual obligors, we employ a sliding scale of exposure, known as hold limits, which is dictated by the type of loan and strength of the borrower.

Allowance for loan and lease losses

We estimate the appropriate level of the ALLL on at least a quarterly basis. The methodology used is 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. Briefly, the ALLL estimate uses various models and estimation techniques based on our historical loss experience, current borrower characteristics, current economic conditions, reasonable and supportable forecasts, and other relevant factors. The ALLL at March 31, 2025, represents our best estimate of the lifetime expected credit losses inherent in the loan portfolio at that date. 

As shown in Figure 26, our ALLL from continuing operations increased by $20 million, or 1.4%, from December 31, 2024. The commercial ALLL increased by $20 million, or 1.9%, from December 31, 2024, through March 31, 2025. Our consumer ALLL was unchanged from December 31, 2024, through March 31, 2025. Refer to Note 4 (“Asset Quality”) within this report for further discussion of changes in the ALLL.

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Figure 26. Allocation of the Allowance for Loan and Lease Losses

 March 31, 2025December 31, 2024Dollars in millionsAmountPercent ofAllowance toTotal AllowancePercent ofLoan Type toTotal LoansAmountPercent ofAllowance toTotal AllowancePercent ofLoan Type toTotal LoansCommercial and industrial$669 46.8 %51.9 %$639 45.4 %50.7 %Commercial real estate:Commercial mortgage297 20.8 12.6 320 22.7 12.8 Construction57 4.0 2.8 51 3.6 2.8 Total commercial real estate loans354 24.8 15.4 371 26.3