Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 19

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 19
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 of amortized cost excluding fair value hedge basis adjustments. The average amortized cost for securities available for sale was $43.2 billion and $42.8 billion for the six months ended June 30, 2025, and June 30, 2024, respectively. Yield based on the fair value of securities available for sale was 4.01% and 2.66% for the six months ended June 30, 2025, and June 30, 2024, respectively.

(f)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations. 

(g)Average balances presented are based on daily average balances over the respective stated period.

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Provision for credit losses

Key’s provision for credit losses was $138 million for the three months ended June 30, 2025, compared to $100 million for the three months ended June 30, 2024. The provision for credit losses was $256 million for the six months ended June 30, 2025, compared to $201 million for the six months ended June 30, 2024. The increase from the year-ago quarter reflects higher net loan charge-offs and a higher reserve build to capture loan growth and the worsening macroeconomic outlook, partly offset by changes in the portfolio mix.

Noninterest income

As shown in Figure 4, noninterest income was $690 million for the second quarter of 2025, compared to noninterest income of $627 million for the year-ago quarter. Noninterest income was $1.4 billion for the six months ended June 30, 2025, compared to $1.3 billion for the six months ended June 30, 2024.

The following discussion explains the composition of certain elements of our noninterest income and the factors that caused those elements to change.

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Figure 4. Noninterest Income

Trust and investment services income 

Trust and investment services income consists of brokerage commissions, trust and asset management fees, and insurance income. The assets under management that primarily generate certain trust and asset management fees are shown in Figure 5. For the three months ended June 30, 2025, trust and investment services income was up $7 million, or 5.0%, compared to the same period one year ago. For the six months ended June 30, 2025, trust and investment services income was up $