Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 169

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 169
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 to GNMA that are 90 days or more past due where Key has the right but not the obligation to repurchase and whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veteran Affairs.(d)Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums.At June 30, 2025, the carrying amount of our commercial nonperforming loans outstanding represented 71% of their original contractual amount owed, total nonperforming loans outstanding represented 76% of their original contractual amount owed, and nonperforming assets in total were carried at 79% of their original contractual amount owed.Nonperforming loans reduced expected interest income by $13 million and $27 million for the three and six months ended June 30, 2025, respectively, and $13 million and $27 million for the three and six months ended June 30, 2024, respectively.The amortized cost basis of nonperforming loans on nonaccrual status for which there is no related allowance for credit losses was $348 million at June 30, 2025 and $381 million at December 31, 2024. As of June 30, 2025, 45% of our nonperforming loans were contractually current versus 43% as of December 31, 2024.

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Collateral-dependent Financial AssetsWe classify financial assets as collateral-dependent when our borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of the collateral. Our commercial loans have collateral that includes cash, accounts receivable, inventory, commercial machinery, commercial properties, commercial real estate construction projects, enterprise value, and stock or ownership interests in the borrowing entity. When appropriate we also consider the enterprise value of the borrower as a repayment source for collateral-dependent loans. Our consumer loans have collateral that includes residential real estate, automobiles, boats, and RVs.At June 30, 2025 and June 30, 2024, the recorded investment of consumer residential mortgage and home equity loans in the process of foreclosure was $65 million and $76 million, respectively.There were no significant changes in the extent to which collateral secures our collateral-dependent financial assets during the three and six months ended June 30, 2025.Loan Modifications Made to Borrowers Experiencing Financial DifficultyThe ALLL for loans modified for borrowers experiencing financial difficulty is determined based on Key’s ALLL policy as described within Note 1 (“Summary