KeyBank 2015 Annual Report Download - page 153
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Our summary of changes in loans held for sale follows:
Year ended December 31,
in millions 2015 2014
Balance at beginning of the period $ 734 $ 611
New originations 7,108 5,681
Transfers from (to) held to maturity, net 62 (3)
Loan sales (7,229) (5,289)
Loan draws (payments), net (36) (266)
Balance at end of period $ 639 $ 734
Commercial lease financing receivables primarily are direct financing leases, but also include leveraged leases.
The composition of the net investment in direct financing leases is as follows:
December 31,
in millions 2015 2014
Direct financing lease receivables $ 2,821 $ 3,009
Unearned income (224) (205)
Unguaranteed residual value 261 220
Deferred fees and costs 17 18
Net investment in direct financing leases $ 2,875 $ 3,042
At December 31, 2015, minimum future lease payments to be received are as follows: 2016 — $930 million;
2017 — $695 million; 2018 — $451 million; 2019 — $294 million; 2020 — $169 million; and all subsequent
years — $200 million. The allowance related to lease financing receivables is $47 million at December 31, 2015.
5. Asset Quality
We assess the credit quality of the loan portfolio by monitoring net credit losses, levels of nonperforming assets
and delinquencies, and credit quality ratings as defined by management.
Nonperforming loans are loans for which we do not accrue interest income, and include commercial and
consumer loans and leases, as well as current year TDRs and nonaccruing TDR loans from prior years.
Nonperforming loans do not include loans held for sale or PCI loans. Nonperforming assets include
nonperforming loans, nonperforming loans held for sale, OREO, and other nonperforming assets.
Our nonperforming assets and past due loans were as follows:
December 31,
in millions 2015 2014
Total nonperforming loans (a), (b) $ 387 $ 418
OREO (c) 14 18
Other nonperforming assets 2—
Total nonperforming assets $ 403 $ 436
Nonperforming assets from discontinued operations — education lending (d) $7$11
Restructured loans included in nonperforming loans $ 159 $ 157
Restructured loans with an allocated specific allowance (e) 69 82
Specifically allocated allowance for restructured loans (f) 30 34
Accruing loans past due 90 days or more $72$96
Accruing loans past due 30 through 89 days 208 235
(a) Loan balances exclude $11 million and $13 million of PCI loans at December 31, 2015, and December 31, 2014, respectively.
(b) Includes carrying value of consumer residential mortgage loans in the process of foreclosure of approximately $114 million at
December 31, 2015.
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