Keyp(KEY) - 2025 Q2 - Quarterly Results

Executive Summary Q2 2025 Performance Overview KeyCorp's Q2 2025 featured significant year-over-year net income growth, a 21% revenue increase, and improved credit quality Key Financial Highlights (2Q25 vs. Prior Periods) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :------------------------------------------------ | :--- | :--- | :--- | :------------------- | :------------------- | | Net Income (attributable to common shareholders) | $387M | $370M | $237M | 4.6% | 63.3% | | Diluted EPS | $0.35 | $0.33 | $0.25 | 6.1% | 40.0% | | Revenue | $1.8B | - | - | - | 21% | | Net Interest Income (NII) | - | - | - | 4% QoQ | - | | Net Interest Margin (NIM) | - | - | - | 8 bps QoQ | - | | Period-end Loans | Up $1.6B | - | - | Up $1.6B QoQ | - | | Commercial Loans (YTD) | Up $3.3B | - | - | - | 5% YTD | | Net Charge-offs | Down 8% | - | - | Down 8% QoQ | - | - Revenue increased 21% year-over-year, driven by net interest income tailwinds and 10% growth in noninterest income, while expenses grew 7%[2] - Credit quality improved for the sixth consecutive quarter[2] - Client deposits and relationship households increased 2% year-over-year, with deposit costs managed below 2%[3] - Assets under management reached a record $64 billion[3] - KeyCorp plans to increase front-line bankers by 10% in 2025[4] Consolidated Financial Performance Income Statement Highlights KeyCorp's Q2 2025 income statement showed robust growth in total revenue, driven by increases in both net interest and noninterest income Consolidated Income Statement Highlights (Dollars in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :---------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Net interest income (TE) | $1,150 | $1,105 | $899 | 4.1% | 27.9% | | Noninterest income | $690 | $668 | $627 | 3.3% | 10.0% | | Total revenue (TE) | $1,840 | $1,773 | $1,526 | 3.8% | 20.6% | | Noninterest expense | $1,154 | $1,131 | $1,079 | 2.0% | 7.0% | Net Interest Income (NII) and Net Interest Margin (NIM) Taxable-equivalent net interest income and margin increased due to lower deposit costs and reinvestment into higher-yielding assets Net Interest Income and Margin (TE) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :---------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Net interest income (TE) | $1,150M | $1,105M | $899M | 4.1% | 27.9% | | Net interest margin (TE) | 2.66% | 2.58% | 2.04% | 8 bps | 62 bps | - Year-over-year increase in NII and NIM reflects lower deposit costs, reinvestment of maturing low-yielding securities, and an improved funding mix[6] - Quarter-over-quarter increase in NII and NIM was driven by declining funding costs, redeployment of low-yielding investments, and growth in commercial loans[7] Noninterest Income Breakdown Noninterest income grew year-over-year and quarter-over-quarter, led by strong investment banking and corporate services income Noninterest Income (Dollars in millions) | Category | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :-------------------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Trust and investment services income | $146 | $139 | $139 | 5.0% | 5.0% | | Investment banking and debt placement fees | $178 | $175 | $126 | 1.7% | 41.3% | | Cards and payments income | $85 | $82 | $85 | 3.7% | — | | Service charges on deposit accounts | $73 | $69 | $66 | 5.8% | 10.6% | | Corporate services income | $76 | $65 | $68 | 16.9% | 11.8% | | Commercial mortgage servicing fees | $70 | $76 | $61 | (7.9)% | 14.8% | | Total noninterest income | $690 | $668 | $627 | 3.3% | 10.0% | - Year-over-year increase of $63 million was driven by a $52 million increase in investment banking and debt placement fees[8] - Quarter-over-quarter increase of $22 million was driven by an $11 million increase in corporate services income and a $7 million increase in trust and investment services income[9] Noninterest Expense Breakdown Noninterest expense increased due to higher personnel costs from incentive compensation and investments in people and technology Noninterest Expense (Dollars in millions) | Category | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :-------------------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Personnel expense | $705 | $680 | $636 | 3.7% | 10.8% | | Business services and professional fees | $48 | $40 | $37 | 20.0% | 29.7% | | Computer processing | $107 | $107 | $101 | — | 5.9% | | Total noninterest expense | $1,154 | $1,131 | $1,079 | 2.0% | 7.0% | - Year-over-year increase of $75 million was primarily due to a $69 million increase in personnel expense and higher technology-related expenses[10] - Quarter-over-quarter increase of $23 million was primarily due to a $25 million increase in personnel expense and higher technology-related fees[11] Balance Sheet Highlights The balance sheet showed increased average loans driven by commercial growth, while average deposits slightly decreased Average Loans Average loans grew quarter-over-quarter from commercial and industrial loans but decreased year-over-year from declines in other categories Average Loans (Dollars in millions) | Category | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :---------------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Commercial and industrial | $55,604 | $53,746 | $54,599 | 3.5% | 1.8% | | Total consumer loans | $31,403 | $31,989 | $33,862 | (1.8)% | (7.3)% | | Total loans | $105,715 | $104,354 | $108,961 | 1.3% | (3.0)% | - Compared to 1Q25, average loans increased by $1.4 billion, driven by a $1.9 billion increase in average commercial loans[14] - Compared to 2Q24, average loans decreased by $3.2 billion, with commercial loans declining by $787 million and consumer loans by $2.5 billion[13] Average Deposits Average deposits decreased slightly quarter-over-quarter due to a reduction in higher-cost balances, lowering the overall cost of deposits Average Deposits (Dollars in millions) | Category | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :---------------- | :--- | :--- | :--- | :------------------- | :------------------- | | Non-time deposits | $131,845 | $131,917 | $128,161 | (0.1)% | 2.9% | | Time deposits | $15,601 | $16,625 | $16,019 | (6.2)% | (2.6)% | | Total deposits | $147,446 | $148,542 | $144,180 | (0.7)% | 2.3% | | Cost of total deposits | 1.99% | 2.06% | 2.28% | N/A | N/A | - Compared to 1Q25, average deposits decreased by $1.1 billion, driven by a reduction in higher-cost commercial client balances and retail CDs[16] - The overall cost of deposits declined by 7 basis points to 1.99% quarter-over-quarter[16] Asset Quality Asset quality metrics were mixed, with an increased provision for credit losses reflecting loan growth and a deteriorating macroeconomic outlook Asset Quality Metrics (Dollars in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :------------------------------------------ | :--- | :--- | :--- | :------------------- | :------------------- | | Net loan charge-offs | $102 | $110 | $91 | (7.3)% | 12.1% | | Net loan charge-offs to average total loans | 0.39% | 0.43% | 0.34% | N/A | N/A | | Nonperforming loans at period end | $696 | $686 | $710 | 1.5% | (2.0)% | | Nonperforming assets at period end | $707 | $700 | $727 | 1.0% | (2.8)% | | Allowance for credit losses | $1,743 | $1,707 | $1,833 | 2.1% | (4.9)% | | Provision for credit losses | $138 | $118 | $100 | 16.9% | 38.0% | - The increase in provision for credit losses reflects a larger reserve build and higher net loan charge-offs compared to the prior year[17] - Key added $36 million to its allowance for credit losses in Q2 2025 due to loan growth, changes in loan mix, and a deteriorating macroeconomic outlook[17] - Nonperforming loans as a percentage of period-end portfolio loans remained stable at 0.65% compared to 1Q25[19] Capital KeyCorp maintained a strong regulatory capital position, with all risk-based capital ratios exceeding 'well-capitalized' benchmarks Capital Ratios | Ratio | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :-------------------------- | :-------- | :-------- | :-------- | | Common Equity Tier 1 | 11.7% | 11.8% | 10.5% | | Tier 1 risk-based capital | 13.4% | 13.5% | 12.2% | | Total risk-based capital | 15.7% | 16.0% | 14.7% | | Tangible common equity to tangible assets | 7.8% | 7.4% | 5.2% | | Leverage | 10.3% | 10.2% | 9.1% | - Key's estimated risk-based capital ratios continued to exceed all 'well-capitalized' regulatory benchmarks at June 30, 2025[20] Shareholder Information Common shares outstanding increased year-over-year, and the company declared a consistent quarterly dividend of $0.205 per share Summary of Changes in Common Shares Outstanding (in thousands) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :-------------------------------------------------- | :------- | :------- | :------- | :------------------- | :------------------- | | Shares outstanding at beginning of period | 1,111,986 | 1,106,786 | 942,776 | 0.5% | 17.9% | | Shares issued under employee compensation plans (net) | 467 | 5,200 | 424 | (91.0)% | 10.1% | | Shares outstanding at end of period | 1,112,453 | 1,111,986 | 943,200 | — % | 17.9% | - Key declared a dividend of $0.205 per common share in May 2025, payable in the second quarter of 2025[24] Line of Business Results Major Business Segments Overview Both Consumer and Commercial Bank segments showed strong year-over-year growth in revenue and net income Major Business Segments (Dollars in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :------------------------------------------ | :--- | :--- | :--- | :------------------- | :------------------- | | Revenue from continuing operations (TE): | | | | | | | Consumer Bank | $912 | $871 | $758 | 4.7% | 20.3% | | Commercial Bank | $974 | $942 | $768 | 3.4% | 26.8% | | Total | $1,840 | $1,773 | $1,526 | 3.8% | 20.6% | | Income (loss) from continuing operations attributable to Key: | | | | | | | Consumer Bank | $122 | $116 | $59 | 5.2% | 106.8% | | Commercial Bank | $349 | $321 | $206 | 8.7% | 69.4% | | Total | $423 | $406 | $273 | 4.2% | 54.9% | Consumer Bank The Consumer Bank's net income rose significantly year-over-year, driven by strong growth in net interest income Consumer Bank Summary of Operations (Dollars in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :------------------------------------------ | :--- | :--- | :--- | :------------------- | :------------------- | | Net income attributable to Key | $122 | $116 | $59 | 5.2% | 106.8% | | Total revenue (TE) | $912 | $871 | $758 | 4.7% | 20.3% | | Net interest income (TE) | $676 | $646 | $523 | 4.6% | 29.3% | | Noninterest income | $236 | $225 | $235 | 4.9% | 0.4% | | Provision for credit losses | $55 | $43 | $33 | 27.9% | 66.7% | | Average loans and leases | $36,137 | $36,819 | $39,174 | (1.9)% | (7.8)% | | Average deposits | $88,002 | $88,306 | $85,397 | (0.3)% | 3.1% | | Assets under management at period end | $64,244 | $61,053 | $57,602 | 5.2% | 11.5% | - Net income more than doubled year-over-year, primarily due to a 29.3% increase in taxable-equivalent net interest income[30] - Average deposits increased by $2.6 billion (3.1%) year-over-year, driven by growth in money market and demand deposits[30] - Provision for credit losses increased by $22 million year-over-year, reflecting changes in reserve levels due to economic outlook deterioration[30] Commercial Bank The Commercial Bank delivered strong net income growth, supported by increased net interest and noninterest income Commercial Bank Summary of Operations (Dollars in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs. 1Q25 | Change 2Q25 vs. 2Q24 | | :------------------------------------------ | :--- | :--- | :--- | :------------------- | :------------------- | | Net income attributable to Key | $349 | $321 | $206 | 8.7% | 69.4% | | Total revenue (TE) | $974 | $942 | $768 | 3.4% | 26.8% | | Net interest income (TE) | $556 | $534 | $411 | 4.1% | 35.3% | | Noninterest income | $418 | $408 | $357 | 2.5% | 17.1% | | Provision for credit losses | $84 | $75 | $87 | 12.0% | (3.4)% | | Average loans and leases | $69,087 | $67,056 | $69,248 | 3.0% | (0.2)% | | Average deposits | $55,886 | $57,436 | $57,360 | (2.7)% | (2.6)% | - Net income increased by 69.4% year-over-year, driven by a 35.3% increase in taxable-equivalent net interest income[34] - Noninterest income increased by $61 million year-over-year, primarily due to higher investment banking and commercial mortgage servicing fees[34] - Average deposit balances decreased by $1.5 billion year-over-year, mainly due to a reduction in higher-cost client balances[34] Company Information KeyCorp is a major US bank-based financial services company with approximately $185 billion in assets - KeyCorp's roots trace back 200 years to Albany, New York, and it is headquartered in Cleveland, Ohio[36] - Key is one of the nation's largest bank-based financial services companies, with approximately $185 billion in assets at June 30, 2025[36] - The company provides services to individuals and businesses in 15 states through KeyBank National Association and KeyBanc Capital Markets[37] Additional Information This section provides contact information, investor relations details, and disclosures regarding forward-looking statements - The earnings release contains forward-looking statements subject to assumptions, risks, and uncertainties[40] - A live Internet broadcast of KeyCorp's conference call is accessible via the Investor Relations section of their website[41] Financial Supplement Basis of Presentation This section clarifies the use of GAAP and non-GAAP financial measures and defines key calculation methodologies - Non-GAAP financial measures are used to help understand Key's results and are reconciled to comparable GAAP measures[46] - Forward-looking non-GAAP financial measures cannot be reconciled to GAAP due to the complexity of forecasting[47] - Taxable-equivalent adjustments are applied to tax-exempt income to facilitate comparison with taxable investments[49] Detailed Financial Highlights This section provides comprehensive tables of KeyCorp's financial performance, ratios, and asset quality metrics Summary of Operations (Three months ended) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :---------------------------------------------------------- | :-------- | :-------- | :-------- | | Net interest income (TE) | $1,150 | $1,105 | $899 | | Noninterest income | $690 | $668 | $627 | | Total revenue (TE) | $1,840 | $1,773 | $1,526 | | Provision for credit losses | $138 | $118 | $100 | | Noninterest expense | $1,154 | $1,131 | $1,079 | | Net income (loss) attributable to Key common shareholders | $389 | $369 | $238 | | Diluted EPS | $0.35 | $0.33 | $0.25 | | Return on average tangible common equity | 11.09% | 11.24% | 10.39% | | Net interest margin (TE) | 2.66% | 2.58% | 2.04% | | Common Equity Tier 1 | 11.7% | 11.8% | 10.5% | | Net loan charge-offs | $102 | $110 | $91 | | Nonperforming loans at period-end | $696 | $686 | $710 | Summary of Operations (Six months ended) | Metric | 6/30/2025 | 6/30/2024 | | :---------------------------------------------------------- | :-------- | :-------- | | Net interest income (TE) | $2,255 | $1,785 | | Noninterest income | $1,358 | $1,274 | | Total revenue (TE) | $3,613 | $3,059 | | Provision for credit losses | $256 | $201 | | Noninterest expense | $2,285 | $2,222 | | Net income (loss) attributable to Key common shareholders | $758 | $421 | | Diluted EPS | $0.69 | $0.45 | | Return on average tangible common equity | 11.16% | 9.12% | | Net interest margin (TE) | 2.62% | 2.03% | | Net loan charge-offs | $212 | $172 | GAAP to Non-GAAP Reconciliations This section reconciles non-GAAP measures like tangible common equity and pre-provision net revenue to their GAAP counterparts - Tangible common equity ratios assist in analyzing Key's capital position without the effects of intangible assets and preferred stock[57] - Pre-provision net revenue helps analyze results by eliminating the effects of the provision for credit losses and significant items[58] - The cash efficiency ratio removes intangible asset amortization to provide greater consistency and comparability with peer banks[59] Tangible Common Equity to Tangible Assets at Period-End (Dollars in millions) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :------------------------------------ | :-------- | :-------- | :-------- | | Key shareholders' equity (GAAP) | $19,484 | $19,003 | $14,789 | | Tangible common equity (non-GAAP) | $14,268 | $13,783 | $9,550 | | Total assets (GAAP) | $185,499 | $188,691 | $187,450 | | Tangible assets (non-GAAP) | $182,729 | $185,917 | $184,657 | | Tangible common equity to tangible assets ratio (non-GAAP) | 7.81% | 7.41% | 5.17% | Consolidated Financial Statements This section presents detailed consolidated balance sheets and income statements for a comprehensive financial overview Consolidated Balance Sheets The balance sheet shows total assets of $185.5 billion and total deposits of $146.9 billion as of June 30, 2025 Consolidated Balance Sheet (Dollars in millions) | Category | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | | Total assets | $185,499 | $188,691 | $187,450 | | Loans | $106,389 | $104,809 | $107,078 | | Total deposits | $146,905 | $150,737 | $145,720 | | Total liabilities | $166,015 | $169,688 | $172,661 | | Key shareholders' equity | $19,484 | $19,003 | $14,789 | | Common shares outstanding (000) | 1,112,453 | 1,111,986 | 943,200 | Consolidated Statements of Income The income statements detail strong revenue growth contributing to increased net income for the period Consolidated Statements of Income (Three months ended, Dollars in millions) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :---------------------------------------------------------- | :-------- | :-------- | :-------- | | Total interest income | $2,107 | $2,070 | $2,088 | | Total interest expense | $966 | $974 | $1,201 | | Net interest income | $1,141 | $1,096 | $887 | | Total noninterest income | $690 | $668 | $627 | | Total noninterest expense | $1,154 | $1,131 | $1,079 | | Net income (loss) attributable to Key common shareholders | $389 | $369 | $238 | | Diluted EPS | $0.35 | $0.33 | $0.25 | Consolidated Average Balance Sheets, Net Interest Income and Yields/Rates This section details average balances, net interest income, and associated yields, highlighting the net interest margin Consolidated Average Balance Sheets (2Q25, Dollars in millions) | Category | Average Balance | Interest | Yield/Rate | | :-------------------------------- | :-------------- | :------- | :--------- | | Total loans | $105,715 | $1,452 | 5.51% | | Total earning assets | $170,000 | $2,116 | 4.90% | | Total interest-bearing deposits | $119,973 | $730 | 2.44% | | Total interest-bearing liabilities | $135,764 | $966 | 2.86% | | Net interest income (TE) | $1,150 | - | 2.66% | | Interest rate spread (TE) | - | - | 2.04% | - The average yield on total earning assets for 2Q25 was 4.90%, while the average rate on total interest-bearing liabilities was 2.86%[72] Detailed Expense and Loan Data This section provides a detailed breakdown of noninterest expenses and loan portfolio composition Noninterest Expense Breakdown Personnel expense remains the largest cost component, showing increases alongside technology-related spending Noninterest Expense (Dollars in millions) | Category | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | | Personnel | $705 | $680 | $636 | | Net occupancy | $69 | $67 | $66 | | Computer processing | $107 | $107 | $101 | | Business services and professional fees | $48 | $40 | $37 | | Total noninterest expense | $1,154 | $1,131 | $1,079 | | Average full-time equivalent employees | 17,105 | 16,989 | 16,646 | Personnel Expense Breakdown Increased salaries and incentive compensation were the primary drivers of higher personnel expense Personnel Expense (Dollars in millions) | Category | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | | Salaries and contract labor | $427 | $405 | $394 | | Incentive and stock-based compensation | $168 | $158 | $143 | | Employee benefits | $108 | $109 | $98 | | Total personnel expense | $705 | $680 | $636 | Loan Composition The loan portfolio saw quarter-over-quarter growth in commercial loans, while consumer loans experienced a slight decline Loan Composition (Dollars in millions) | Category | 6/30/2025 | 3/31/2025 | 6/30/2024 | Change 6/30/2025 vs. 3/31/2025 | Change 6/30/2025 vs. 6/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | :----------------------------- | :----------------------------- | | Commercial and industrial | $56,058 | $54,378 | $53,129 | 3.1% | 5.5% | | Total commercial loans | $75,222 | $73,122 | $73,525 | 2.9% | 2.3% | | Total consumer loans | $31,167 | $31,687 | $33,553 | (1.6)% | (7.1)% | | Total loans | $106,389 | $104,809 | $107,078 | 1.5% | (0.6)% | Loans Held for Sale Composition Total loans held for sale decreased significantly quarter-over-quarter, driven by reductions in commercial categories Loans Held for Sale Composition (Dollars in millions) | Category | 6/30/2025 | 3/31/2025 | 6/30/2024 | Change 6/30/2025 vs. 3/31/2025 | Change 6/30/2025 vs. 6/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | :----------------------------- | :----------------------------- | | Commercial and industrial | $158 | $252 | $72 | (37.3)% | 119.4% | | Real estate — commercial mortgage | $290 | $473 | $354 | (38.7)% | (18.1)% | | Total loans held for sale | $530 | $811 | $517 | (34.6)% | 2.5% | Detailed Asset Quality Data This section provides granular details on loan loss experience, nonperforming assets, and past due loans Summary of Changes in Loans Held for Sale Loans held for sale decreased in Q2 2025 as higher loan sales offset new originations Summary of Changes in Loans Held for Sale (Dollars in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | | :-------------------------- | :--- | :--- | :--- | | Balance at beginning of period | $811 | $797 | $228 | | New originations | $1,806 | $1,840 | $1,532 | | Loan sales | $(2,012) | $(1,695) | $(1,234) | | Balance at end of period | $530 | $811 | $517 | Summary of Loan and Lease Loss Experience Net loan charge-offs decreased quarter-over-quarter, while the allowance for loan and lease losses increased slightly Loan and Lease Loss Experience (Three months ended, Dollars in millions) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | | Average loans outstanding | $105,715 | $104,354 | $108,961 | | Total loans charged off | $127 | $126 | $131 | | Total recoveries | $25 | $16 | $40 | | Net loan charge-offs | $(102) | $(110) | $(91) | | Provision (credit) for loan and lease losses | $119 | $130 | $96 | | Allowance for loan and lease losses at end of period | $1,446 | $1,429 | $1,547 | | Total allowance for credit losses at end of period | $1,743 | $1,707 | $1,833 | | Net loan charge-offs to average total loans | 0.39% | 0.43% | 0.34% | Summary of Nonperforming Assets and Past Due Loans Nonperforming loans and assets remained relatively stable, with slight improvements year-over-year Nonperforming Assets and Past Due Loans (Dollars in millions) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :---------------------------------------------------------- | :-------- | :-------- | :-------- | | Total nonperforming loans | $696 | $686 | $710 | | Total nonperforming assets | $707 | $700 | $727 | | Accruing loans past due 90 days or more | $74 | $86 | $137 | | Nonperforming loans to period-end portfolio loans | 0.65% | 0.65% | 0.66% | | Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets | 0.66% | 0.67% | 0.68% | Selected Items Impact on Earnings This section details the impact of selected items, such as FDIC special assessments, which are excluded from adjusted non-GAAP measures - No selected items impacted earnings for the three and six months ended June 30, 2025[104] - The FDIC special assessment amounts reflect adjustments from initial estimates based on quarterly invoices received from the FDIC[106] Selected Items Impact on Earnings (Dollars in millions, except per share amounts) | Item | Period | Pretax Amount | After-tax Net Income Impact | EPS Impact | | :------------------------------------------ | :------- | :------------ | :-------------------------- | :--------- | | FDIC special assessment (other expense) | 3 months ended 6/30/2024 | $(5) | $(4) | $0.00 | | FDIC special assessment (other expense) | 6 months ended 6/30/2024 | $(34) | $(26) | $(0.02) |