Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 57

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 57
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 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 June 30, 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 $37 million, or 2.6%, from December 31, 2024. The commercial ALLL increased by $49 million, or 4.7%, from December 31, 2024, through June 30, 2025. Our consumer ALLL decreased $12 million, or 3.2%, from December 31, 2024, through June 30, 2025. Refer to Note 4 (“Asset Quality”) within this report for further discussion of changes in the ALLL.

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

 June 30, 2025December 31, 2024Dollars in millionsAmountPercent ofAllowance toTotal AllowancePercent ofLoan Type toTotal LoansAmountPercent ofAllowance toTotal AllowancePercent ofLoan Type toTotal LoansCommercial and industrial$678 46.8 %52.7 %$639 45.4 %50.7 %Commercial real estate:Commercial mortgage319 22.1 13.0 320 22.7 12.8 Construction57 4.0 2.7 51 3.6 2.8 Total commercial real estate loans376 26.1 15.7 371 26.3 15.6 Commercial lease financing32 2.2 2.3 27 1.9 2.6 Total commercial loans1,086 75.1 70.7 1,037 73.6 68.9 Real estate — residential mortgage68 4.7 18.2 90 6.4 19.1 Home equity loans69 4.8 5.6 70 5.0