Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 208

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 208
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 our 2024 Form 10-K. Three months ended June 30,Six months ended June 30,Dollars in millions2025202420252024Interest cost on PBO$11 $10 $22 $20 Expected return on plan assets(11)(9)(22)(19)Amortization of losses2 2 4 5 Settlement loss— — — — Net pension cost$2 $3 $4 $6 

15. Trust Preferred Securities Issued by Unconsolidated Subsidiaries We own the outstanding common stock of business trusts formed by us that issued corporation-obligated, mandatorily redeemable, trust preferred securities. The trusts used the proceeds from the issuance of their trust preferred securities and common stock to buy debentures issued by KeyCorp. These debentures are the trusts’ only assets; the interest payments from the debentures finance the distributions paid on the mandatorily redeemable trust preferred securities. The outstanding common stock of these business trusts is recorded in Other investments on the Consolidated Balance Sheets. We unconditionally guarantee the following payments or distributions on behalf of the trusts: •required distributions on the trust preferred securities;•the redemption price when a capital security is redeemed; and•the amounts due if a trust is liquidated or terminated.The Regulatory Capital Rules require us to treat our mandatorily redeemable trust preferred securities as Tier 2 capital.

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The trust preferred securities, common stock, and related debentures are summarized as follows:Dollars in millionsTrust Preferred Securities, Net of Discount (a)Common StockPrincipal Amount of Debentures, Net of Discount (b)Interest Rate of Trust Preferred Securities and Debentures (c)Maturity of Trust Preferred Securities and DebenturesJune 30, 2025KeyCorp Capital I$156 $6 $162 5.299 %2028KeyCorp Capital II86 4 90 6.875 2029KeyCorp Capital III111 4 115 7.750 2029HNC Statutory Trust III21 1 22 5.990 2035HNC Statutory Trust IV18 1 19 5.821 2037Willow Grove Statutory Trust I21 1 22 5.890 2036Westbank Capital Trust II8 — 8 6.771