KeyBank 2013 Annual Report Download - page 80

Figure 21 shows loans that are either administered or serviced by us but not recorded on the balance sheet. The
table includes loans that have been sold.
Figure 21. Loans Administered or Serviced
December 31,
in millions 2013 2012 2011 2010 2009
Commercial real estate loans (a) $ 177,731 $ 107,630 $ 99,608 $ 117,071 $ 123,599
Education loans (b) —— — — 3,810
Commercial lease financing 717 520 521 706 649
Commercial loans 327 343 306 269 247
Total $ 178,775 $ 108,493 $ 100,435 $ 118,046 $ 128,305
(a) We acquired the servicing for commercial mortgage loan portfolios with an aggregate principal balance of $105.9 billion during 2013,
$11.8 billion during 2012, $3.5 billion during 2011, $1.6 billion during 2010, and $7.2 billion during 2009.
(b) We adopted new accounting guidance on January 1, 2010, which required us to consolidate our education loan securitization trusts and
resulted in the addition of approximately $2.8 billion of assets, and the same amount of liabilities and equity, to our balance sheet.
In the event of default by a borrower, we are subject to recourse with respect to approximately $1.4 billion of the
$179 billion of loans administered or serviced at December 31, 2013. Additional information about this recourse
arrangement is included in Note 20 (“Commitments, Contingent Liabilities and Guarantees”) under the heading
“Recourse agreement with FNMA.”
We derive income from several sources when retaining the right to administer or service loans that are sold. We
earn noninterest income (recorded as “other income”) from fees for servicing or administering loans. This fee
income is reduced by the amortization of related servicing assets. In addition, we earn interest income from
investing funds generated by escrow deposits collected in connection with the servicing of CRE loans. Additional
information about our mortgage servicing assets is included in Note 9 (“Mortgage Servicing Assets”).
Maturities and sensitivity of certain loans to changes in interest rates
Figure 22 shows the remaining maturities of certain commercial and real estate loans, and the sensitivity of those
loans to changes in interest rates. At December 31, 2013, approximately 27.4% of these outstanding loans were
scheduled to mature within one year.
Figure 22. Remaining Maturities and Sensitivity of Certain Loans to Changes in Interest Rates
December 31, 2013
in millions Within One Year One - Five Years Over Five Years Total
Commercial, financial and agricultural $ 7,551 $ 13,957 $ 3,455 $ 24,963
Real estate — construction 444 534 115 1,093
Real estate — residential and commercial mortgage 1,858 4,365 3,684 9,907
$ 9,853 $ 18,856 $ 7,254 $ 35,963
Loans with floating or adjustable interest rates (a) $ 15,533 $ 3,605 $ 19,138
Loans with predetermined interest rates (b) 3,323 3,649 6,972
$ 18,856 $ 7,254 $ 26,110
(a) Floating and adjustable rates vary in relation to other interest rates (such as the base lending rate) or a variable index that may change
during the term of the loan.
(b) Predetermined interest rates either are fixed or may change during the term of the loan according to a specific formula or schedule.
Securities
Our securities portfolio totaled $17.1 billion at December 31, 2013, compared to $16 billion at December 31,
2012. Available-for-sale securities were $12.3 billion at December 31, 2013, compared to $12.1 billion at
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