KeyBank 2013 Annual Report Download - page 73

(e) Excludes loans in the amount of $4.5 billion at December 31, 2013, $5.2 billion at December 31, 2012, $5.8 billion at December 31,
2011, $6.5 billion at December 30, 2010, and $3.5 billion at December 30, 2009, related to the discontinued operations of the education
lending business.
(f) December 31, 2013, includes purchased loans of $166 million, of which $16 million were PCI loans. December 31, 2012, includes
purchased loans of $217 million, of which $23 million were PCI loans.
(g) In late March 2009, we transferred $1.5 billion of loans from the construction portfolio to the commercial mortgage portfolio in
accordance with regulatory guidelines pertaining to the classification of loans for projects that have reached a completed status.
At December 31, 2013, total loans outstanding from continuing operations were $54.5 billion, compared to $52.8
billion at the end of 2012, and $49.6 billion at the end of 2011. Loans related to the discontinued operations of
the education lending business and excluded from total loans were $4.5 billion at December 31, 2013, $5.2
billion at December 31, 2012, and $5.8 billion at December 31, 2011. Further information regarding our
discontinued operations is provided in the section titled “Consumer loan portfolio” within this discussion. The
increase in our outstanding loans from continuing operations over the past year results primarily from increased
lending activity in our commercial, financial and agricultural portfolio, along with the credit card portfolio and
Western New York branch acquisitions. For more information on balance sheet carrying value, see Note 1
(“Summary of Significant Accounting Policies”) under the headings “Loans” and “Loans Held for Sale.”
Commercial loan portfolio
Commercial loans outstanding were $38.3 billion at December 31, 2013, an increase of $1.4 billion, or 3.9%,
compared to December 31, 2012.
Commercial, financial and agricultural. As shown in Figure 15, our commercial, financial and agricultural
loans, also referred to as “commercial and industrial,” represent 45.8% and 44.0% of our total loan portfolio at
December 31, 2013, and 2012, respectively, and are the largest component of our total loans. The loans consist of
fixed and variable rate loans to our large, middle market and small business clients. These loans increased
$1.7 billion, or 7.4%, from one year ago. Growth in our commercial and industrial portfolio is primarily
attributable to increased loans to clients in the manufacturing, technology, and healthcare industries.
Additionally, we are increasing loans to real estate investment trust (“REIT”) clients and institutionally-backed
commercial real estate (“CRE”) funds. REITs and institutional CRE funds effectively enable us to lend to entities
that generally have more diverse cash flows, lower debt levels and better access to the capital markets than
private owners or developers.
Figure 16. Commercial, Financial and Agricultural Loans
December 31, 2013 December 31, 2012
dollars in millions Amount
Percent
of Total Amount
Percent
of Total
Industry classification:
Services $ 6,036 24.2 % $ 5,610 24.1 %
Manufacturing 4,238 17.0 4,196 18.1
Public utilities 1,838 7.4 1,424 6.1
Financial services 2,155 8.6 2,236 9.6
Wholesale trade 1,838 7.4 1,604 6.9
Retail trade 993 4.0 889 3.8
Mining 634 2.5 761 3.3
Dealer floor plan 1,345 5.4 1,216 5.2
Property management 877 3.5 798 3.4
Transportation 953 3.8 851 3.7
Building contractors 526 2.1 459 2.0
Agriculture/forestry/fishing 542 2.2 584 2.5
Insurance 169 .7 112 .5
Public administration 432 1.7 446 1.9
Communications 204 .8 183 .8
Other 2,183 8.7 1,873 8.1
Total $ 24,963 100.0 % $ 23,242 100.0 %
Commercial, financial and agricultural loans increased $1.7 billion, or 7.4%, from the same period last year, with
Key Corporate Bank increasing $1.6 billion and Key Community Bank up $98 million. We have experienced
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