v3.26.1
Asset Quality
 3 Months Ended
Mar. 31, 2026
Credit Loss [Abstract]  
Asset Quality
4. Asset Quality

ALLL

We estimate the appropriate level of the ALLL on at least a quarterly basis. The methodology is described in Note 1 ("Summary of Significant Accounting Policies") under the heading "Allowance for Loan and Lease Losses" beginning on page 109 of our 2025 Form 10-K.

The ALLL at March 31, 2026, represents our current estimate of lifetime credit losses inherent in the loan portfolio at that date. The changes in the ALLL by loan category for the periods indicated are as follows:
Three months ended March 31, 2026:
Dollars in millionsDecember 31, 2025ProvisionCharge-offsRecoveriesMarch 31, 2026
Commercial and Industrial $745 $102 $(90)$10 $767 
Commercial real estate:
Real estate — commercial mortgage252 2 (1)— 253 
Real estate — construction55 (4)— — 51 
Total commercial real estate loans307 (2)(1)— 304 
Commercial lease financing26 — — — 26 
Total commercial loans1,078 100 (91)10 1,097 
Real estate — residential mortgage66 2 — 1 69 
Home equity loans52 (1)(1)1 51 
Other consumer loans149 12 (15)2 148 
Credit cards82 10 (10)2 84 
Total consumer loans349 23 (26)6 352 
Total ALLL — continuing operations1,427 123 
(a)
(117)16 1,449 
Discontinued operations11 1 (1)— 11 
Total ALLL — including discontinued operations$1,438 $124 $(118)$16 $1,460 
(a)Excludes a credit related to reserves on lending-related commitments of $17 million.


Three months ended March 31, 2025:
Dollars in millionsDecember 31, 2024ProvisionCharge-offsRecoveriesMarch 31, 2025
Commercial and Industrial $639 $82 $(62)$10 $669 
Commercial real estate:
Real estate — commercial mortgage320 13 (36)— 297 
Real estate — construction51 6 — — 57 
Total commercial real estate loans371 19 (36)— 354 
Commercial lease financing27 7 — — 34 
Total commercial loans1,037 108 (98)10 1,057 
Real estate — residential mortgage90 (19)(1)1 71 
Home equity loans70 5 (1)1 75 
Other consumer loans136 19 (14)2 143 
Credit cards76 17 (12)2 83 
Total consumer loans372 22 (28)6 372 
Total ALLL — continuing operations1,409 130 
(a)
(126)16 1,429 
Discontinued operations13 1 (1)— 13 
Total ALLL — including discontinued operations$1,422 $131 $(127)$16 $1,442 
(a)Excludes a credit related to reserves on lending-related commitments of $12 million.

As described in Note 1 ("Summary of Significant Accounting Policies"), under the heading “Allowance for Loan and Lease Losses” beginning on page 109 of our 2025 Form 10-K, we estimate the ALLL using relevant available information, from internal and external sources, relating to past events, current economic and portfolio conditions, and reasonable and supportable forecasts. In our estimation of expected credit losses, we use a two year reasonable and supportable period across all products. Following this two year period in which supportable forecasts can be generated, for all modeled loan portfolios, we revert expected credit losses to a level that is consistent with our historical information by reverting the macroeconomic variables (model inputs) to their long run average. We revert to historical loss rates for less complex estimation methods for smaller portfolios. A 20-year fixed length look back period is used to calculate the long run average of the macroeconomic variables. A four quarter reversion period is used where the macroeconomic variables linearly revert to their long run average following the two year reasonable and supportable period.

We develop our reasonable and supportable forecasts using relevant data including, but not limited to, changes in economic output, unemployment rates, property values, and other factors associated with the credit losses on financial assets. Some macroeconomic variables apply to all portfolio segments, while others are more portfolio specific. The following table discloses key macroeconomic variables for each loan portfolio.
SegmentPortfolio
Key Macroeconomic Variables (a)
CommercialCommercial and industrialBBB corporate bond rate (spread), fixed investment, business bankruptcies, GDP, industrial production, unemployment rate, and Producer Price Index
Commercial real estateProperty & real estate price indices, unemployment rate, business bankruptcies, GDP, and SOFR
Commercial lease financingBBB corporate bond rate (spread), GDP, and unemployment rate
ConsumerReal estate — residential mortgageGDP, home price index, unemployment rate, 30 year mortgage rate and U.S. household income
Home equityHome price index, unemployment rate, and 30 year mortgage rate
Other consumerUnemployment rate, prime rate and U.S. household income
Credit cardsUnemployment rate and U.S. household income
Discontinued operationsUnemployment rate
(a)Variables include all transformations and interactions with other risk drivers. Additionally, variables may have varying impacts at different points in the economic cycle.

In addition to macroeconomic drivers, portfolio attributes such as remaining term, outstanding balance, risk ratings, utilization, FICO, LTV, and delinquency also drive ALLL changes. Our ALLL models were designed to capture the correlation between economic and portfolio changes. As such, evaluating shifts in individual portfolio attributes and macroeconomic variables in isolation may not be indicative of past or future performance.

Economic Outlook

As of March 31, 2026, the economy continues to be resilient, but growth is weakening, inflationary pressures continue, and geopolitical uncertainty is elevated due to the ongoing military conflicts, including with Iran.

We utilized the Moody’s February 2026 Consensus forecast as the baseline forecast to estimate our expected credit losses as of March 31, 2026. This baseline scenario reflects slowing growth over the next two years, but no recession. U.S. GDP is expected to slow to an annual growth rate of 2.0% by mid-2026 and remain at that level for 2027. The expected National Unemployment Rate is forecasted at 4.5% over 2026. The U.S. Consumer Price Index is forecasted to remain close to 3% through 2026.

Evolving market conditions may not be fully captured in the baseline forecast as of quarter-end. The geopolitical environment remains both uncertain and complex, which poses potential downside-risks to the economic outlook over the next two years, although to what extent remains highly uncertain. These economic uncertainties were addressed through a qualitative reserve increase, which leveraged downside economic assumptions.

As a result of the current economic uncertainty, our future loss estimates may vary considerably from our March 31, 2026 assumptions.

Commercial Loan Portfolio

The ALLL from continuing operations for the commercial segment increased $19 million, or 1.8%, from December 31, 2025. The increasing reserve levels are reflective of the elevated economic uncertainty due to geopolitical tensions and the potential downsides from energy price volatility. These reserve increases are partially offset by continued improvement in the commercial portfolio mix.

Consumer Loan Portfolio

The ALLL from continuing operations for the consumer segment increased by $3 million, or 0.9%,from December 31, 2025. The stable reserve levels are reflective of economic uncertainty impacts, offset by loan runoff and continued strong credit performance, particularly for the residential mortgage loan book which represents the largest segment of the consumer portfolio.
Credit Risk Profile

The prevalent risk characteristic for both commercial and consumer loans is the risk of loss arising from an obligor’s inability or failure to meet contractual payment or performance terms. Evaluation of this risk is stratified and monitored by the loan risk rating grades assigned for the commercial loan portfolios and the refreshed FICO score assigned for the consumer loan portfolios. The internal risk grades assigned to loans follow our definitions of Pass and Criticized, which are consistent with published definitions of regulatory risk classifications. Loans with a pass rating represent those loans not classified on our rating scale for credits, as minimal credit risk has been identified. Criticized loans are those loans that either have a potential weakness deserving management's close attention or have a well-defined weakness that may put full collection of contractual cash flows at risk. Borrower FICO scores provide information about the credit quality of our consumer loan portfolio as they provide an indication as to the likelihood that a debtor will repay its debts. The scores are obtained from a nationally recognized consumer rating agency and are presented in the tables below at the dates indicated.

Most extensions of credit are subject to loan grading or scoring. Loan grades are assigned at the time of origination, verified by credit risk management, and periodically re-evaluated thereafter. This risk rating methodology blends our judgment with quantitative modeling. Commercial loans generally are assigned two internal risk ratings. The first rating reflects the probability that the borrower will default on an obligation; the second rating reflects expected recovery rates on the credit facility. Default probability is determined based on, among other factors, the financial strength of the borrower, an assessment of the borrower’s management, the borrower’s competitive position within its industry sector, and our view of industry risk in the context of the general economic outlook. Types of exposure, transaction structure, and collateral, including credit risk mitigants, affect the expected recovery assessment.
Commercial Credit Exposure
Credit Risk Profile by Creditworthiness Category and Vintage (a)(b)
As of March 31, 2026Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and Internal Risk Rating
Dollars in millions20262025202420232022PriorTotal
Commercial and Industrial
Risk Rating:
Pass$3,017 $9,648 $5,707 $2,203 $4,832 $5,959 $25,593 $193 $57,152 
Criticized (Accruing)2 181 188 193 455 719 1,467 10 3,215 
Criticized (Nonaccruing)— 1 7 12 36 51 175 2 284 
Total commercial and industrial3,019 9,830 5,902 2,408 5,323 6,729 27,235 205 60,651 
Current year gross write-offs— — — 4 12 6 68 — 90 
Real estate — commercial mortgage
Risk Rating:
Pass640 3,282 813 578 1,762 4,262 1,501 29 12,867 
Criticized (Accruing)— 47 105 73 373 467 14 8 1,087 
Criticized (Nonaccruing)— — 16 7 93 70 4 — 190 
Total real estate — commercial mortgage
640 3,329 934 658 2,228 4,799 1,519 37 14,144 
Current year gross write-offs— — — — 1 — — — 1 
Real estate — construction
Risk Rating:
Pass5 612 641 633 239 152 268 — 2,550 
Criticized (Accruing)— 7 — 75 41 125 — 3 251 
Criticized (Nonaccruing)— — — — — — — — — 
Total real estate — construction5 619 641 708 280 277 268 3 2,801 
Current year gross write-offs— — — — — — — — — 
Commercial lease financing
Risk Rating:
Pass87 309 221 269 393 807 — — 2,086 
Criticized (Accruing)— 3 4 23 52 26 — — 108 
Criticized (Nonaccruing)— — — 5 1 — — — 6 
Total commercial lease financing87 312 225 297 446 833 — 2,200 
Current year gross write-offs— — — — — — — — — 
Total commercial loans$3,751 $14,090 $7,702 $4,071 $8,277 $12,638 $29,022 $245 $79,796 
Total commercial loan current period gross write-offs$— $— $— $4 $13 $6 $68 $— $91 

As of December 31, 2025Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and Internal Risk Rating
Dollars in millions20252024202320222021PriorTotal
Commercial and Industrial
Risk Rating:
Pass$9,473 $5,864 $2,263 $5,313 $2,648 $4,115 $24,267 $174 $54,117 
Criticized (Accruing)139 218 171 463 259 493 1,535 37 3,315 
Criticized (Nonaccruing)1 14 18 54 21 33 115 — 256 
Total commercial and industrial9,613 6,096 2,452 5,830 2,928 4,641 25,917 211 57,688 
Current year gross write-offs13 27 22 27 8 28 187 — 312 
Real estate — commercial mortgage
Risk Rating:
Pass3,246 826 651 1,911 1,519 2,997 1,366 29 12,545 
Criticized (Accruing)8 99 60 326 237 246 20 9 1,005 
Criticized (Nonaccruing)— 16 3 95 31 9 3 — 157 
Total real estate — commercial mortgage
3,254 941 714 2,332 1,787 3,252 1,389 38 13,707 
Current year gross write-offs19 14 1 18 29 10 3 — 94 
Real estate — construction
Risk Rating:
Pass468 565 771 262 130 72 296 2 2,566 
Criticized (Accruing)— — 20 95 36 127 — — 278 
Criticized (Nonaccruing)— — — — — — — — — 
Total real estate — construction468 565 791 357 166 199 296 2 2,844 
Current year gross write-offs— — — — — — — — — 
Commercial lease financing
Risk Rating:
Pass322 228 293 433 249 609 — — 2,134 
Criticized (Accruing)5 4 26 55 18 21 — — 129 
Criticized (Nonaccruing)— — 5 2 — — — — 7 
Total commercial lease financing327 232 324 490 267 630 — — 2,270 
Current year gross write-offs— — 3 1 — 2 — — 6 
Total commercial loans$13,662 $7,834 $4,281 $9,009 $5,148 $8,722 $27,602 $251 $76,509 
Total commercial loan current period gross write-offs$32 $41 $26 $46 $37 $40 $190 $— $412 
(a)Accrued interest of $322 million and $338 million as of March 31, 2026, and December 31, 2025, respectively, presented in “Accrued income and other assets” on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in these tables.
(b)Gross write-off information is presented on a year-to-date basis for the three months ended March 31, 2026 and the twelve months ended December 31, 2025.
Consumer Credit Exposure
Credit Risk Profile by FICO Score and Vintage (a)(b)
As of March 31, 2026Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and FICO Score
Dollars in millions20262025202420232022PriorTotal
Real estate — residential mortgage
FICO Score:
750 and above$91 $329 $172 $561 $5,152 $9,753 $— $— $16,058 
660 to 74925 64 47 97 587 1,186 — — 2,006 
Less than 6601 4 14 28 105 251 — — 403 
No Score— 2 2 1 1 8 2 — 16 
Total real estate — residential mortgage117 399 235 687 5,845 11,198 2 — 18,483 
Current period gross write-offs— — — — — — — — — 
Home equity loans
FICO Score:
750 and above17 43 24 22 114 1,782 1,720 167 3,889 
660 to 7493 16 12 11 37 385 672 52 1,188 
Less than 660— 2 4 6 15 149 249 21 446 
No Score— — — — — 1 4 — 5 
Total home equity loans20 61 40 39 166 2,317 2,645 240 5,528 
Current period gross write-offs— — — — — — 1 — 1 
Other consumer loans
FICO Score:
750 and above42 161 65 94 945 1,545 76 — 2,928 
660 to 74927 100 44 68 208 374 163 — 984 
Less than 6602 19 11 19 52 95 52 — 250 
No Score1 9 8 5 9 18 265 — 315 
Total consumer direct loans72 289 128 186 1,214 2,032 556 — 4,477 
Current period gross write-offs— 1 1 2 3 5 3 — 15 
Credit cards
FICO Score:
750 and above— — — — — — 444 — 444 
660 to 749— — — — — — 353 — 353 
Less than 660— — — — — — 108 — 108 
No Score— — — — — — 1 — 1 
Total credit cards— — — — — — 906 — 906 
Current period gross write-offs— — — — — — 10 — 10 
Total consumer loans$209 $749 $403 $912 $7,225 $15,547 $4,109 $240 $29,394 
Total consumer loan current period gross write-offs$— $1 $1 $2 $3 $5 $14 $— $26 
As of December 31, 2025Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and FICO Score
Dollars in millions20252024202320222021PriorTotal
Real estate — residential mortgage
FICO Score:
750 and above$358 $224 $607 $5,342 $6,738 $3,403 $— $— $16,672 
660 to 74969 36 86 504 582 420 — — 1,697 
Less than 6602 11 23 87 73 149 — — 345 
No Score2 2 2 1 — 9 2 — 18 
Total real estate — residential mortgage431 273 718 5,934 7,393 3,981 2 — 18,732 
Current period gross write-offs— — — — — 2 — — 2 
Home equity loans
FICO Score:
750 and above43 26 23 117 676 1,164 1,749 179 3,977 
660 to 74918 13 13 41 149 258 718 58 1,268 
Less than 6602 3 5 15 44 109 253 21 452 
No Score— — — — — 1 5 — 6 
Total home equity loans63 42 41 173 869 1,532 2,725 258 5,703 
Current period gross write-offs— — — — — — 2 — 2 
Other consumer loans
FICO Score:
750 and above175 73 104 986 1,032 595 81 — 3,046 
660 to 749112 48 74 220 218 179 172 — 1,023 
Less than 66017 12 21 54 52 46 54 — 256 
No Score12 8 5 10 13 6 265 — 319 
Total consumer direct loans316 141 204 1,270 1,315 826 572 — 4,644 
Current period gross write-offs4 5 7 9 9 7 15 — 56 
Credit cards
FICO Score:
750 and above— — — — — — 479 — 479 
660 to 749— — — — — — 364 — 364 
Less than 660— — — — — — 108 — 108 
No Score— — — — — — 2 — 2 
Total credit cards— — — — — — 953 — 953 
Current period gross write-offs— — — — — — 45 — 45 
Total consumer loans$810 $456 $963 $7,377 $9,577 $6,339 $4,252 $258 $30,032 
Total consumer current period gross write-offs$4 $5 $7 $9 $9 $9 $62 $— $105 
(a)Accrued interest of $122 million and $121 million as of March 31, 2026, and December 31, 2025, respectively, presented in “Accrued income and other assets” on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in this table.
(b)Gross write-off information is presented on a year-to-date basis for the three months ended March 31, 2026 and the twelve months ended December 31, 2025.


Nonperforming and Past Due Loans

Our policies for determining past due loans, placing loans on nonaccrual, applying payments on nonaccrual loans, and resuming accrual of interest for our commercial and consumer loan portfolios are disclosed in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Nonperforming Loans” beginning on page 108 of our 2025 Form 10-K.
The following aging analysis of past due and current loans as of March 31, 2026, and December 31, 2025, provides further information regarding Key’s credit exposure.

Aging Analysis of Loan Portfolio(a)
As of March 31, 2026
Current (b)(c)
30-59
Days Past
Due (b)
60-89
Days Past
Due (b)
90 and
Greater
Days Past
Due (b)
Non-performing
Loans
Total Past
Due and
Non-performing
Loans (b)
Total
Loans (d)
Dollars in millions
LOAN TYPE
Commercial and industrial$60,272 $27 $28 $40 $284 $379 $60,651 
Commercial real estate:
Commercial mortgage13,861 2 3 88 190 283 14,144 
Construction2,800 — — 1 — 1 2,801 
Total commercial real estate loans16,661 2 3 89 190 284 16,945 
Commercial lease financing2,192 1 — 1 6 8 2,200 
Total commercial loans$79,125 $30 $31 $130 $480 $671 $79,796 
Real estate — residential mortgage$18,350 $11 $7 $— $115 $133 $18,483 
Home equity loans5,423 18 6 5 76 105 5,528 
Other consumer loans4,440 16 9 8 4 37 4,477 
Credit cards880 5 4 10 7 26 906 
Total consumer loans$29,093 $50 $26 $23 $202 $301 $29,394 
Total loans$108,218 $80 $57 $153 $682 $972 $109,190 
(a)Amounts in table represent amortized cost and exclude loans held for sale.
(b)Accrued interest of $443 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 $54 million in Commercial mortgage and $6 million in Real estate - residential mortgage associated with loans sold to GNMA that are 90 days or more past due where Key has the right but not the obligation to repurchase and whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veteran Affairs.
(d)Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums.

As of December 31, 2025
Current (b)(c)
30-59
Days Past
Due (b)
60-89
Days Past
Due (b)
90 and
Greater
Days Past
Due (b)
Non-performing
Loans
Total Past
Due and
Non-performing
Loans (b)
Total
Loans (d)
Dollars in millions
LOAN TYPE
Commercial and industrial$57,336 $38 $17 $41 $256 $352 $57,688 
Commercial real estate:
Commercial mortgage13,450 47 20 33 157 257 13,707 
Construction2,843 — — 1 — 1 2,844 
Total commercial real estate loans16,293 47 20 34 157 258 16,551 
Commercial lease financing2,260 3 — — 7 10 2,270 
Total commercial loans$75,889 $88 $37 $75 $420 $620 $76,509 
Real estate — residential mortgage$18,593 $21 $14 $— $104 $139 $18,732 
Home equity loans5,593 18 7 5 80 110 5,703 
Other consumer loans4,606 15 10 9 4 38 4,644 
Credit cards926 6 4 10 7 27 953 
Total consumer loans$29,718 $60 $35 $24 $195 $314 $30,032 
Total loans$105,607 $148 $72 $99 $615 $934 $106,541 
(a)Amounts in table represent amortized cost and exclude loans held for sale.
(b)Accrued interest of $459 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 $66 million in Commercial mortgage and $6 million in Real estate - residential mortgage associated with loans sold to GNMA that are 90 days or more past due where Key has the right but not the obligation to repurchase and whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veteran Affairs.
(d)Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums.


At March 31, 2026, the carrying amount of our commercial nonperforming loans outstanding represented 72% of their original contractual amount owed, total nonperforming loans outstanding represented 78% 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 $12 million for the three months ended March 31, 2026, respectively, and $13 million for the three months ended March 31, 2025, respectively.

The amortized cost basis of nonperforming loans on nonaccrual status for which there is no related allowance for credit losses was $251 million at March 31, 2026 and $386 million at December 31, 2025.

Collateral-dependent Financial Assets

We 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 March 31, 2026 and March 31, 2025, the recorded investment of consumer residential mortgage and home equity loans in the process of foreclosure was $65 million and $68 million, respectively.

There were no significant changes in the extent to which collateral secures our collateral-dependent financial assets during the three months ended March 31, 2026.

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

The ALLL for loans modified for borrowers experiencing financial difficulty is determined based on Key’s ALLL policy as described within Note 1 (“Summary of Significant Accounting Policies”) beginning on page 109 of our 2025 Form 10-K.

Modifications for Borrowers Experiencing Financial Difficulty

Our strategy in working with commercial borrowers is to allow them time to improve their financial position through loan modification. Commercial borrowers that are rated substandard or worse in accordance with the regulatory definition, or that cannot otherwise restructure at market terms and conditions, are considered to be experiencing financial difficulty. A modification of a loan is subject to the normal underwriting standards and processes for other similar credit extensions, both new and existing. The modified loan is evaluated to determine if it is a new loan or a continuation of the prior loan.

Consumer loans in which a borrower requires a modification as a result of negative changes to their financial condition or to avoid default, generally indicate the borrower is experiencing financial difficulty. The primary modifications made to consumer loans are amortization, maturity date and interest rate changes. Consumer borrowers identified as experiencing financial difficulty are generally unable to refinance their loans through our normal origination channel or through other independent sources.

The following tables show the amortized cost basis at the end of the noted reporting periods of the loans modified to borrowers experiencing financial difficulty within the past 12 months of the noted periods. The tables do not include those modifications that only resulted in an insignificant payment delay. The tables do not include consumer loans that are still within a trial modification period. Trial modifications may be done for consumer borrowers where a trial payment plan period is offered in advance of a permanent loan modification. As of March 31, 2026, there were 124 loans totaling $20 million in a trial modification period. As of March 31, 2025, there were 98 loans totaling $15 million in a trial modification period.

Commitments outstanding to lend additional funds to borrowers experiencing financial difficulty whose loans were modified were $98 million and $77 million at March 31, 2026 and March 31, 2025, respectively.
As of March 31, 2026Interest Rate ReductionTerm ExtensionOther
Combination (a)
Total
Dollars in millionsAmortized Cost BasisAmortized Cost BasisAmortized Cost BasisAmortized Cost BasisAmortized Cost Basis% of Total Loan Type
LOAN TYPE
Commercial and Industrial$2 $271 $27 $47 $347 0.57 %
Commercial real estate:
Commercial mortgage— 140 18 53 211 1.49 
Total commercial real estate loans— 140 18 53 211 1.25 
Total commercial loans$2 $411 $45 $100 $558 0.70 %
Real estate — residential mortgage$2 $1 $— $6 $9 0.05 %
Home equity loans3 1 1 3 8 0.14 
Other consumer loans— 2 — 2 4 0.09 
Credit cards— — — 3 3 0.33 
Total consumer loans$5 $4 $1 $14 $24 0.08 %
Total loans$7 $415 $46 $114 $582 0.53 %

As of March 31, 2025Interest Rate ReductionTerm ExtensionOther
Combination (a)
Total
Dollars in millionsAmortized Cost BasisAmortized Cost BasisAmortized Cost BasisAmortized Cost BasisAmortized Cost Basis% of Total Loan Type
LOAN TYPE
Commercial and Industrial$— $150 $60 $17 $227 0.42 %
Commercial real estate:
Commercial mortgage— 306 21 — 327 2.47 
Construction— 49 — — 49 1.67 
Total commercial real estate loans— 355 21 — 376 2.33 
Total commercial loans$— $505 $81 $17 $603 0.82 %
Real estate — residential mortgage$1 $— $— $13 $14 0.07 %
Home equity loans4 1 1 6 12 0.19 
Other consumer loans— 3 — 2 5 0.10 
Credit cards— — — 4 4 0.44 
Total consumer loans$5 $4 $1 $25 $35 0.11 %
Total loans$5 $509 $82 $42 $638 0.61 %
(a)Combination modifications consist primarily of loans modified with both an interest rate reduction and a term extension.

Financial Effects of Modifications to Borrowers Experiencing Financial Difficulty

The following table summarizes the financial impacts of loan modifications made to specific loans for the noted periods. For the three months ended March 31, 2026, the weighted-average interest rate change for commercial and industrial loans was comprised solely of modifications of commercial credit card balances.

Three months ended March 31, 2026Weighted-average Interest Rate ChangeWeighted-average Term Extension (in years)
LOAN TYPE
Commercial and Industrial(12.83)%0.77
Commercial mortgage— %0.29
Real estate — residential mortgage(2.00)%6.87
Home equity loans(1.67)%8.83
Other consumer loans(5.51)%1.30
Credit cards(20.99)%0.25

Three months ended March 31, 2025Weighted-average Interest Rate ChangeWeighted-average Term Extension (in years)
LOAN TYPE
Commercial and Industrial(22.20)%0.47
Commercial mortgage— %0.52
Real estate — residential mortgage(1.45)%5.24
Home equity loans(1.83)%6.05
Other consumer loans(3.22)%0.40
Credit cards(2.22)%0.25
Amortized Cost Basis of Modified Loans That Subsequently Defaulted

Key considers modifications to borrowers experiencing financial difficulty that subsequently become 90 days or more past due under modified terms as subsequently defaulted. The following table presents the amortized cost of modified loans to borrowers experiencing financial difficulty that were within 12 months of their modification and subsequently defaulted within the noted periods.

Three months ended March 31, 2026
Dollars in millionsInterest Rate ReductionTerm ExtensionOtherCombinationTotal
LOAN TYPE
Commercial real estate
Commercial mortgage$— $39 $2 $— $41 
Total commercial real estate loans— 39 2 — 41 
Total commercial loans— 39 2 — 41 
Home equity loans— — — 1 1 
Total consumer loans$— $— $— $1 $1 
Total loans$— $39 $2 $1 $42 

Three months ended March 31, 2025
Dollars in millionsInterest Rate ReductionTerm ExtensionOtherCombinationTotal
LOAN TYPE
Commercial real estate
Commercial mortgage$— $19 $— $— $19 
Total commercial real estate loans— 19 — — 19 
Total commercial loans— 19 — — 19 
Credit cards— — — 1 1 
Total consumer loans$— $— $— $1 $1 
Total loans$— $19 $— $1 $20 

Key closely monitors the performance of loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the amortized cost as of March 31, 2026, of loans modified during the 12 months then ended, by aging.

As of March 31, 2026Current30-89 Days 
Past Due		90 and Greater
Days Past Due		Total
Dollars in millions
LOAN TYPE
Commercial and Industrial$338 $4 $5 $347 
Commercial real estate
Commercial mortgage167 — 44 211 
Total commercial real estate loans167 — 44 211 
Total commercial loans$505 $4 $49 $558 
Real estate — residential mortgage$8 $1 $— $9 
Home equity loans7 — 1 8 
Other consumer loans4 — — 4 
Credit cards3 — — 3 
Total consumer loans$22 $1 $1 $24 
Total loans$527 $5 $50 $582 
The following table presents the amortized cost as of March 31, 2025, of loans modified during the twelve months then ended, by aging.

As of March 31, 2025Current30-89 Days 
Past Due		90 and Greater
Days Past Due		Total
Dollars in millions
LOAN TYPE
Commercial and Industrial$207 $8 $12 $227 
Commercial real estate
Commercial mortgage256 50 21 327 
Construction49 — — 49 
Total commercial real estate loans305 50 21 376 
Total commercial loans$512 $58 $33 $603 
Real estate — residential mortgage$14 $— $— $14 
Home equity loans10 1 1 12 
Other consumer loans5 — — 5 
Credit cards4 — — 4 
Total consumer loans$33 $1 $1 $35 
Total loans$545 $59 $34 $638 

Liability for Credit Losses on Lending-related Commitments

The liability for credit losses on lending-related commitments is included in “accrued expense and other liabilities” on the balance sheet. This includes credit risk for recourse associated with loans sold under the Fannie Mae Delegated Underwriting and Servicing program and credit losses inherent in unfunded lending-related commitments, such as letters of credit and unfunded loan commitments, and certain financial guarantees.

Changes in the liability for credit losses on lending-related commitments are summarized as follows:
 Three months ended March 31,
Dollars in millions20262025
Balance at beginning of period$313 $290 
Provision (credit) for losses on lending-related commitments(17)(12)
Balance at end of period$296 $278