Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 78

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 78
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522 million presented in “Accrued income and other assets” on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.(c)Includes balances of $94 million in Commercial mortgage and $3 million in Real estate - residential mortgage associated with loans sold to GNMA where Key has the right but not the obligation to repurchase.(d)Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums.At December 31, 2024, the carrying amount of our commercial nonperforming loans outstanding represented 72% of their original contractual amount owed, total nonperforming loans outstanding represented 77% 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 $54 million, $37 million, and $17 million for each of the twelve months ended December 31, 2024, December 31, 2023, and December 31, 2022, respectively.The amortized cost basis of nonperforming loans on nonaccrual status for which there is no related allowance for credit losses was $381 million at December 31, 2024. As of December 31, 2024, 43% of our nonperforming loans were contractually current versus 51% as of December 31, 2023.

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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 December 31, 2024 and December 31, 2023, the recorded investment of consumer residential mortgage loans in the process of foreclosure was approximately $72 million and $89 million, respectively.There were no significant changes in the extent to which collateral secures our collateral-dependent financial assets during 2024.Loan Modifications Made to Borrowers Experiencing Financial DifficultyAs part of our loss mitigation activities, we may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty. Our