KeyBank 2013 Annual Report Download - page 153

payment defaults during the year ended December 31, 2013, 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. There were no significant payment
defaults during 2013 arising from commercial loans that were designated as TDRs during 2012. There were no
significant payment defaults during 2012 arising from commercial or consumer loans that were designated as
TDRs during 2011.
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. Other modification of loan
terms for consumer TDRs include those made under the terms of updated regulatory guidance issued in the third
quarter of 2012.
The following table shows the concession types for our commercial and consumer accruing and nonaccruing
TDRs and other selected financial data.
December 31,
in millions 2013 2012
Commercial loans:
Interest rate reduction $95$ 104
Forgiveness of principal 57
Other modification of loan terms 77
Total $ 107 $ 118
Consumer loans:
Interest rate reduction $ 130 $ 122
Forgiveness of principal 56
Other modification of loan terms 96 74
Total $ 231 $ 202
Total commercial and consumer TDRs (a) $ 338 $ 320
Total loans 54,457 52,822
(a) Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs are $15 million and $32
million at December 31, 2013, and December 31, 2012, 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, 2013, approximately $53.5 billion, or 98.3%, of our total loans are current. At December 31,
2013, total past due loans and nonperforming loans of $897 million represent approximately 1.7% of total loans.
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