KeyBank 2014 Annual Report Download - page 151

due. During the year ended December 31, 2014, there were no significant commercial loan TDRs, and 84
consumer loan TDRs with a combined recorded investment of $4 million that experienced payment defaults from
modifications resulting in TDR status during 2013. During the year ended December 31, 2013, there were no
significant commercial loan TDRs, and 672 consumer loan TDRs with a combined recorded investment of $31
million that experienced payment defaults from modifications resulting in TDR status during 2012. As TDRs are
individually evaluated for impairment under the specific reserve methodology, subsequent defaults do not
generally have a significant additional impact on the ALLL.
Our loan modifications are handled on a case-by-case basis and are negotiated to achieve mutually agreeable
terms that maximize loan collectability and meet the borrower’s financial needs. Our concession types are
primarily interest rate reductions, forgiveness of principal, and other modifications. The commercial TDR other
concession category includes modification of loan terms, covenants, or conditions. The consumer TDR other
concession category primarily includes those borrowers that are discharged through Chapter 7 bankruptcy and
have not been formally re-affirmed.
The following table shows the post-modification outstanding recorded investment by concession type for our
commercial and consumer accruing and nonaccruing TDRs and other selected financial data.
December 31,
in millions 2014 2013
Commercial loans:
Interest rate reduction $13$95
Forgiveness of principal 25
Other 25 7
Total $40$ 107
Consumer loans:
Interest rate reduction $ 140 $ 130
Forgiveness of principal 45
Other 86 96
Total $ 230 $ 231
Total commercial and consumer TDRs (a) $ 270 $ 338
Total loans 57,381 54,457
(a) Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs are $5 million and $15
million at December 31, 2014, and December 31, 2013, respectively.
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.”
At December 31, 2014, approximately $56.6 billion, or 98.7%, of our total loans were current. At December 31,
2014, total past due loans and nonperforming loans of $749 million represented approximately 1.3% of total
loans.
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