Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 62

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 62
---
266 281 206 184 282 Nonperforming assets from discontinued operations — education lending business2 1 2 2 3 Nonperforming loans to period-end portfolio loans0.65 %0.65 %0.73 %0.69 %0.66 %Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets0.66 0.67 0.74 0.70 0.68 

(a)See Figure 9 and the accompanying discussion in the “Loans and loans held for sale” section for more information related to our commercial real estate loan portfolio.

(b)See Figure 8 and the accompanying discussion in the “Loans and loans held for sale” section for more information related to our commercial loan portfolio.

Figure 31 shows the activity that caused the change in our nonperforming loan balance during each of the last five quarters.

Figure 31. Summary of Changes in Nonperforming Loans from Continuing Operations

 20252024Dollars in millionsSecondFirstFourthThirdSecondBalance at beginning of period$686 $758 $728 $710 $658 Loans placed on nonaccrual status233 170 309 271 317 Charge-offs(127)(126)(131)(167)(131)Loans sold— — (13)(32)(22)Payments(74)(57)(111)(37)(76)Transfers to OREO(1)(2)(2)(1)(1)Loans returned to accrual status(21)(57)(22)(16)(35)Balance at end of period$696 $686 $758 $728 $710 

Operational and compliance risk management

Like all businesses, we are subject to operational risk, which is the risk of loss resulting from human error or malfeasance, inadequate or failed internal processes and systems, and external events. These events include, among other things, threats to our cybersecurity, as we are reliant upon information systems and the internet to conduct our business activities. Operational risk intersects with compliance risk, which is the risk of loss from violations of, or noncompliance with, laws, rules and regulations, prescribed practices, and ethical standards. Under the Dodd-Frank Act, large financial companies like Key are subject to heightened prudential standards and regulation. This heightened level of regulation has increased our operational risk. While operational and compliance