KeyBank 2014 Annual Report Download - page 105

shown in Figure 41, our exit loan portfolio accounted for $41 million, or 9%, of total nonperforming assets at
December 31, 2014, compared to $56 million, or 11%, at December 31, 2013.
At December 31, 2014, the approximate carrying amount of our commercial nonperforming loans outstanding
represented 74% of their original contractual amount, total nonperforming loans outstanding represented 79% of
their contractual amount, and total nonperforming assets represented 79% of their original contractual amount. At
the same date, OREO represented 79% of its original contractual amount.
At December 31, 2014, our 20 largest nonperforming loans totaled $88 million, representing 21% of total loans on
nonperforming status from continuing operations, compared to $86 million, representing 17% in the prior year.
Figure 41 shows the composition of our exit loan portfolio at December 31, 2014, and 2013, the net loan charge-
offs recorded on this portfolio, and the nonperforming status of those loans at these dates. The exit loan portfolio
represented 4% of total loans and loans held for sale at December 31, 2014, and 2013. Additional information
about loan sales is included in the “Loans and loans held for sale” section under “Loan sales.”
Figure 41. Exit Loan Portfolio from Continuing Operations
Balance
Outstanding Change
12-31-14 vs.
12-31-13
Net Loan
Charge-offs
Balance on
Nonperforming
Status
in millions 12-31-14 12-31-13 12-31-14(c) 12-31-13(c) 12-31-14 12-31-13
Residential properties — homebuilder $10$ 20 $ (10) —$1$9$7
Marine and RV floor plan 724 (17) —(3) 56
Commercial lease financing (a) 967 782 185 $ (5) (11) 1—
Total commercial loans 984 826 158 (5) (13) 15 13
Home equity — Other 267 334 (67) 414 10 16
Marine 779 1,028 (249) 14 14 15 26
RV and other consumer 54 70 (16) —211
Total consumer loans 1,100 1,432 (332) 18 30 26 43
Total exit loans in loan portfolio $ 2,084 $ 2,258 $ (174) $13 $17$41$56
Discontinued operations — education lending business (not
included in exit loans above) (b) $ 2,295 $ 4,497 $ (2,202) $31 $37 $11$25
(a) Includes (1) the business aviation, commercial vehicle, office products, construction and industrial leases; (2) Canadian lease financing
portfolios; (3) European lease financing portfolios; and (4) all remaining balances related to lease in, lease out; sale in, lease out; service
contract leases; and qualified technological equipment leases.
(b) December 31, 2013, balance includes loans in Key’s consolidated education loan securitization trusts.
(c) Credit amounts indicate recoveries exceeded charge-offs.
Figure 42 shows the types of activity that caused the change in our nonperforming loans during each of the last
four quarters and the years ended December 31, 2014, and 2013. Loans placed on nonaccrual status decreased
$339 million during 2014 compared to 2013 due to continued improvement in market liquidity.
Figure 42. Summary of Changes in Nonperforming Loans from Continuing Operations
2014 Quarters
in millions 2014 Fourth Third Second First 2013
Balance at beginning of period $ 508 $ 401 $ 396 $ 449 $ 508 $ 674
Loans placed on nonaccrual status 389 103 109 79 98 728
Charge-offs (211) (49) (49) (56) (57) (309)
Loans sold (26) (2) — (21) (3) (127)
Payments (68) (17) (13) (17) (21) (208)
Transfers to OREO (20) (6) (7) (4) (3) (21)
Loans returned to accrual status (154) (12) (35) (34) (73) (229)
Balance at end of period (a) $ 418 $ 418 $ 401 $ 396 $ 449 $ 508
(a) Loan balances exclude $13 million and $16 million of PCI loans at December 31, 2014, and December 31, 2013, respectively.
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