KeyBank 2014 Annual Report Download - page 156

December 31, December 31,
in millions 2012 Provision Charge-offs Recoveries 2013
Commercial, financial and agricultural $ 327 $ 58 $ (62) $ 39 $ 362
Real estate — commercial mortgage 198 (40) (20) 27 165
Real estate — construction 41 (20) (3) 14 32
Commercial lease financing 55 19 (27) 15 62
Total commercial loans 621 17 (112) 95 621
Real estate — residential mortgage 30 25 (20) 2 37
Home equity:
Key Community Bank 105 31 (62) 10 84
Other 25 — (20) 6 11
Total home equity loans 130 31 (82) 16 95
Consumer other — Key Community Bank 38 15 (31) 7 29
Credit cards 26 35 (30) 3 34
Consumer other:
Marine 39 4 (29) 15 29
Other 4 1 (4) 2 3
Total consumer other: 43 5 (33) 17 32
Total consumer loans 267 111 (196) 45 227
Total ALLL — continuing operations 888 128(a) (308) 140 848
Discontinued operations 55 21 (55) 18 39
Total ALLL — including discontinued
operations $ 943 $ 149 $ (363) $ 158 $ 887
(a) Includes $2 million of foreign currency translation adjustment.
December 31, December 31,
in millions 2011 Provision Charge-offs Recoveries 2012
Commercial, financial and agricultural $ 334 $ 10 $ (80) $ 63 $ 327
Real estate — commercial mortgage 272 5 (102) 23 198
Real estate — construction 63 (3) (24) 5 41
Commercial lease financing 78 (18) (27) 22 55
Total commercial loans 747 (6) (233) 113 621
Real estate — residential mortgage 37 17 (27) 3 30
Home equity:
Key Community Bank 103 90 (99) 11 105
Other 29 26 (35) 5 25
Total home equity loans 132 116 (134) 16 130
Consumer other — Key Community Bank 41 29 (38) 6 38
Credit cards — 37 (11) — 26
Consumer other:
Marine 46 30 (59) 22 39
Other 1 6 (6) 3 4
Total consumer other: 47 36 (65) 25 43
Total consumer loans 257 235 (275) 50 267
Total ALLL — continuing operations 1,004 229 (508) 163 888
Discontinued operations 104 9 (75) 17 55
Total ALLL — including discontinued
operations $ 1,108 $ 238 $ (583) $ 180 $ 943
Our ALLL from continuing operations decreased by $54 million, or 6.4%, since 2013 primarily because of the
improvement in the credit quality of our loan portfolios. The quality of new loan originations as well as
decreasing levels of criticized, classified, and nonperforming loans and net loan charge-offs also resulted in a
reduction in our general allowance. Our general allowance applies expected loss rates to our existing loans with
similar risk characteristics as well as any adjustments to reflect our current assessment of qualitative factors such
as changes in economic conditions, underwriting standards, and concentrations of credit. Our delinquency trends
declined during 2013 and into 2014 due to continued improved credit quality, a modest level of loan growth,
relatively stable economic conditions, and continued run-off in our exit loan portfolio, reflecting our effort to
maintain a moderate enterprise risk tolerance.
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