KeyBank 2013 Annual Report Download - page 104

Figure 37. Allocation of the Allowance for Loan and Lease Losses
2013 2012 2011
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 $ 362 42.7 % 45.8 % $ 327 36.8 % 44.0 % $ 334 33.2 % 39.1 %
Commercial real estate:
Commercial mortgage 165 19.4 14.2 198 22.3 14.6 272 27.1 16.2
Construction 32 3.8 2.0 41 4.6 1.9 63 6.3 2.7
Total commercial real estate loans 197 23.2 16.2 239 26.9 16.5 335 33.4 18.9
Commercial lease financing 62 7.3 8.4 55 6.2 9.3 78 7.8 12.2
Total commercial loans 621 73.2 70.4 621 69.9 69.8 747 74.4 70.2
Real estate — residential mortgage 37 4.4 4.0 30 3.4 4.1 37 3.7 3.9
Home equity:
Key Community Bank 84 9.9 19.0 105 11.8 18.6 103 10.2 18.6
Other 11 1.3 .6 25 2.8 .8 29 2.9 1.1
Total home equity loans 95 11.2 19.6 130 14.6 19.4 132 13.1 19.7
Consumer other — Key Community Bank 29 3.4 2.7 38 4.3 2.5 41 4.1 2.4
Credit cards 34 4.0 1.3 26 2.9 1.4 — — —
Consumer other:
Marine 29 3.4 1.9 39 4.4 2.6 46 4.6 3.5
Other 3.4 .1 4 .5 .2 1 .1 .3
Total consumer other 32 3.8 2.0 43 4.9 2.8 47 4.7 3.8
Total consumer loans 227 26.8 29.6 267 30.1 30.2 257 25.6 29.8
Total (a) $ 848 100.0 % 100.0 % $ 888 100.0 % 100.0 % $ 1,004 100.0 % 100.0 %
2010 2009
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 $ 485 30.2 % 32.8 % $ 796 31.4 % 32.7 %
Commercial real estate:
Commercial mortgage 416 25.9 19.0 578 22.8 17.8
Construction 145 9.1 4.2 418 16.5 8.1
Total commercial real estate loans 561 35.0 23.2 996 39.3 25.9
Commercial lease financing 175 10.9 12.9 280 11.1 12.7
Total commercial loans 1,221 76.1 68.9 2,072 81.8 71.3
Real estate — residential mortgage 49 3.1 3.7 30 1.2 3.1
Home equity:
Key Community Bank 120 7.5 19.0 130 5.1 17.1
Other 57 3.5 1.3 78 3.1 1.4
Total home equity loans 177 11.0 20.3 208 8.2 18.5
Consumer other — Key Community Bank 57 3.6 2.3 73 2.9 2.0
Credit cards — — — — — —
Consumer other:
Marine 89 5.5 4.5 140 5.5 4.7
Other 11 .7 .3 11 .4 .4
Total consumer other 100 6.2 4.8 151 5.9 5.1
Total consumer loans 383 23.9 31.1 462 18.2 28.7
Total (a) $ 1,604 100.0 % 100.0 % $ 2,534 100.0 % 100.0 %
(a) Excludes allocations of the ALLL in the amount of $39 million at December 31, 2013, $55 million at December 31, 2012, $104 million
at December 31, 2011, $114 million at December 31, 2010, and $157 million at December 31, 2009, related to the discontinued
operations of the education lending business.
Our provision (credit) for loan and lease losses was $130 million for 2013, compared to $229 million for 2012.
Our net loan charge-offs were $168 million for 2013, compared to $345 million for 2012. Our net loan charge-
offs for 2012 included $33 million of charge-offs reported in accordance with updated regulatory guidance
requiring loans and leases discharged through Chapter 7 bankruptcy and not reaffirmed by the borrower to be
charged-off to the collateral’s fair market value less selling costs and classified as nonaccrual regardless of their
delinquency. Additionally, we continue to reduce our exit loans and leases, as well as our exposure in our higher-
risk businesses, including the residential properties portion of our construction loan portfolio, Marine/RV
financing, and other selected leasing portfolios through the sale of certain loans, payments from borrowers, or net
loan charge-offs. We anticipate that net loan charge-offs will remain at, or below, the lower end of our targeted
range of 40 to 60 basis points of average loans for the balance of the current year.
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