KeyBank 2014 Annual Report Download - page 101

As shown in Figure 37, our ALLL decreased by $54 million, or 6.4%, during the past 12 months. This
contraction is directly associated with the improvement in credit quality of the loan portfolio. The quality of new
loan originations and decreasing levels of criticized, classified, and nonperforming loans and net loan charge-offs
has resulted in a reduction in our general allowance. Our delinquency trends have declined during the past 12
months due to a modest level of loan growth, relatively stable economic conditions, and continued run-off in our
exit loan portfolio reflecting our effort to maintain a moderate enterprise risk tolerance. Our liability for credit
losses on lending-related commitments was $36 million at December 31, 2014. When combined with our ALLL,
our total allowance for credit losses represented 1.45% of period-end loans at December 31, 2014, compared to
1.63% at December 31, 2013.
Figure 37. Allocation of the Allowance for Loan and Lease Losses
2014 2013 2012
December 31,
dollars in millions
Total
Allowance
Percent of
Allowance
to Total
Allowance
Percent of
Loan Type
to Total
Loans
Total
Allowance
Percent of
Allowance
to Total
Allowance
Percent of
Loan Type
to Total
Loans
Total
Allowance
Percent of
Allowance
to Total
Allowance
Percent of
Loan Type
to Total
Loans
Commercial, financial and agricultural $ 391 49.2 % 48.8 % $ 362 42.7 % 45.8 % $ 327 36.8 % 44.0 %
Commercial real estate:
Commercial mortgage 148 18.7 14.0 165 19.4 14.2 198 22.3 14.6
Construction 28 3.5 1.9 32 3.8 2.0 41 4.6 1.9
Total commercial real estate loans 176 22.2 15.9 197 23.2 16.2 239 26.9 16.5
Commercial lease financing 56 7.1 7.4 62 7.3 8.4 55 6.2 9.3
Total commercial loans 623 78.5 72.1 621 73.2 70.4 621 69.9 69.8
Real estate — residential mortgage 23 2.9 3.9 37 4.4 4.0 30 3.4 4.1
Home equity:
Key Community Bank 66 8.3 18.1 84 9.9 19.0 105 11.8 18.6
Other 5.6 .5 11 1.3 .6 25 2.8 .8
Total home equity loans 71 8.9 18.6 95 11.2 19.6 130 14.6 19.4
Consumer other — Key Community Bank 22 2.8 2.7 29 3.4 2.7 38 4.3 2.5
Credit cards 33 4.1 1.3 34 4.0 1.3 26 2.9 1.4
Consumer other:
Marine 21 2.7 1.3 29 3.4 1.9 39 4.4 2.6
Other 1.1 .1 3 .4 .1 4 .5 .2
Total consumer other 22 2.8 1.4 32 3.8 2.0 43 4.9 2.8
Total consumer loans 171 21.5 27.9 227 26.8 29.6 267 30.1 30.2
Total (a) $ 794 100.0 % 100.0 % $ 848 100.0 % 100.0 % $ 888 100.0 % 100.0 %
2011 2010
Total
Allowance
Percent of
Allowance
to Total
Allowance
Percent of
Loan Type
to Total
Loans
Total
Allowance
Percent of
Allowance
to Total
Allowance
Percent of
Loan Type
to Total
Loans
Commercial, financial and agricultural $ 334 33.2 % 39.1 % $ 485 30.2 % 32.8 %
Commercial real estate:
Commercial mortgage 272 27.1 16.2 416 25.9 19.0
Construction 63 6.3 2.7 145 9.1 4.2
Total commercial real estate loans 335 33.4 18.9 561 35.0 23.2
Commercial lease financing 78 7.8 12.2 175 10.9 12.9
Total commercial loans 747 74.4 70.2 1,221 76.1 68.9
Real estate — residential mortgage 37 3.7 3.9 49 3.1 3.7
Home equity:
Key Community Bank 103 10.2 18.6 120 7.5 19.0
Other 29 2.9 1.1 57 3.5 1.3
Total home equity loans 132 13.1 19.7 177 11.0 20.3
Consumer other — Key Community Bank 41 4.1 2.4 57 3.6 2.3
Credit cards — — — — — —
Consumer other:
Marine 46 4.6 3.5 89 5.5 4.5
Other 1 .1 .3 11 .7 .3
Total consumer other 47 4.7 3.8 100 6.2 4.8
Total consumer loans 257 25.6 29.8 383 23.9 31.1
Total (a) $ 1,004 100.0 % 100.0 % $ 1,604 100.0 % 100.0 %
(a) Excludes allocations of the ALLL related to the discontinued operations of the education lending business in the amount of $29 million
at December 31, 2014, $39 million at December 31, 2013, $55 million at December 31, 2012, $104 million at December 31, 2011, and
$114 million at December 31, 2010.
88