Securities

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

6. Securities

The amortized cost, unrealized gains and losses, and approximate fair value of our securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change.


	September 30, 2025								December 31, 2024
Dollars in millions	Amortized Cost (a)(b)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost (a)(b)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
U.S. Treasury, agencies, and corporations	$	8,170	$	59	$	21	$	8,208	$	8,928	$	20	$	44	$	8,904

Agency residential collateralized mortgage obligations	10,554		4		1,779		8,779		11,409		8		2,193		9,224
Agency residential mortgage-backed securities	19,779		161		506		19,434		16,038		3		872		15,169
Agency commercial mortgage-backed securities	4,390		—		355		4,035		4,927		—		517		4,410

Total securities available for sale	$	42,893	$	224	$	2,661	$	40,456	$	41,302	$	31	$	3,626	$	37,707

HELD-TO-MATURITY SECURITIES


Agency residential collateralized mortgage obligations	$	4,176	$	6	$	191	$	3,991	$	4,577	$	3	$	332	$	4,248
Agency residential mortgage-backed securities	1,002		6		13		995		151		—		17		134
Agency commercial mortgage-backed securities	2,185		1		152		2,034		2,333		—		203		2,130
Asset-backed securities (c)	122		—		2		120		308		—		8		300
Other securities	24		—		—		24		26		—		1		25
Total held-to-maturity securities	$	7,509	$	13	358		$	7,164	$	7,395	$	3	$	561	$	6,837

(a)Amortized cost amounts exclude accrued interest receivable which is recorded within “other assets” on the balance sheet. At September 30, 2025, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $126 million and $22 million, respectively. At December 31, 2024, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $109 million and $21 million, respectively.

(b)Excluded from the amortized cost of securities available for sale are basis adjustments for securities designated in active fair value hedges. Basis adjustments totaled $111 million and $(6) million as of September 30, 2025 and December 31, 2024, respectively. The securities being hedged are primarily U.S Treasuries, Agency RMBS, and Agency CMBS.

(c)Amortized cost includes $118 million of securities as of September 30, 2025, and $303 million of securities as of December 31, 2024, related to the purchase of senior notes from a securitization collateralized by sold indirect auto loans.

The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of September 30, 2025, and December 31, 2024.


	Duration of Unrealized Loss Position
	Less than 12 Months				12 Months or Longer				Total
Dollars in millions	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
September 30, 2025
Securities available for sale:
U.S Treasury, agencies, and corporations	$	50	$	—	$	1,819	$	21	$	1,869	$	21

Agency residential collateralized mortgage obligations	41		—		7,877		1,779		7,918		1,779
Agency residential mortgage-backed securities	555		2		7,701		504		8,256		506
Agency commercial mortgage-backed securities	—		—		3,868		355		3,868		355

Held-to-maturity securities:


Agency residential collateralized mortgage obligations	173		2		3,230		189		3,403		191
Agency residential mortgage-backed securities	190		1		128		12		318		13
Agency commercial mortgage-backed securities	—		—		1,964		152		1,964		152
Asset-backed securities	—		—		120		2		120		2
Other securities	5		—		6		—		11		—
Total securities in an unrealized loss position	$	1,014	$	5	$	26,713	$	3,014	$	27,727	$	3,019
December 31, 2024
Securities available for sale:
U.S. Treasury, agencies, and corporations	$	3,647	$	8	$	508	$	36	$	4,155	$	44

Agency residential collateralized mortgage obligations	91		—		8,108		2,193		8,199		2,193
Agency residential mortgage-backed securities	11,364		254		3,145		618		14,509		872
Agency commercial mortgage-backed securities	50		1		4,360		516		4,410		517

Held-to-maturity securities:


Agency residential collateralized mortgage obligations	569		18		3,387		314		3,956		332
Agency residential mortgage-backed securities	—		—		134		17		134		17
Agency commercial mortgage-backed securities	—		—		2,060		203		2,060		203
Asset-backed securities	—		—		300		8		300		8
Other securities	7		—		8		1		15		1
Total securities in an unrealized loss position	$	15,728	$	281	$	22,010	$	3,906	$	37,738	$	4,187

Based on our evaluation at September 30, 2025, an allowance for credit losses has not been recorded nor have unrealized losses been recognized into income. The issuers of the securities are of high credit quality and have a history of no credit losses, management does not intend to sell, and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely attributed to changes in interest rates and other market conditions. The security issuers continue to make timely principal and interest payments.

For the three months ended September 30, 2025, we had no gross realized gains or losses from the sale of securities available for sale. For the three months ended September 30, 2024, we recognized no gross realized gains and $935 million in gross realized losses from the sale of securities available for sale.

For the nine months ended September 30, 2025, we had no gross realized gains or losses from the sale of securities available for sale. For the nine months ended September 30, 2024, we recognized no gross realized gains and $948 million in gross realized losses from the sale of securities available for sale.

At September 30, 2025 and December 31, 2024, securities available for sale and held-to-maturity securities totaling $19.2 billion and $19.1 billion, respectively, were pledged to secure securities sold under repurchase agreements, to secure public and trust deposits, to facilitate access to secured funding, and for other purposes required or permitted by law.

The following table shows our securities by remaining maturity at September 30, 2025. CMOs, other mortgage-backed securities, and asset-backed securities in the available for sale portfolio and held-to-maturity portfolio are presented based on their expected average lives. The remaining securities, in both the available-for-sale and held-to-maturity portfolios, are presented based on their remaining contractual maturity. Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties.


September 30, 2025	Securities Available for Sale				Held to Maturity Securities
Dollars in millions	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	3,023	$	3,030	$	562	$	555
Due after one through five years	11,115		10,811		2,153		2,091
Due after five through ten years	21,322		19,646		3,603		3,460
Due after ten years	7,433		6,969		1,191		1,058
Total	$	42,893	$	40,456	$	7,509	$	7,164

KEYCORP /NEW/ 10-Q