KeyBank 2015 Annual Report Download - page 73

(d) Commercial lease financing includes receivables held as collateral for a secured borrowing of $134 million, $302 million and $58 million
at December 31, 2015, December 31, 2014, and December 31, 2013, respectively. Principal reductions are based on the cash payments
received from these related receivables. Additional information pertaining to this secured borrowing is included in Note 18 (“Long-Term
Debt”).
(e) Total loans exclude loans of $1.8 billion at December 31, 2015, $2.3 billion at December 31, 2014, $4.5 billion at December 31, 2013,
$5.2 billion at December 31, 2012, and $5.8 billion at December 31, 2011, related to the discontinued operations of the education lending
business.
(f) At December 31, 2015, total loans include purchased loans of $114 million, of which $11 million were PCI loans. At December 31,
2014, total loans include purchased loans of $138 million, of which $13 million were PCI loans. At December 31, 2013, total loans
include purchased loans of $166 million, of which $16 million were PCI loans. At December 31, 2012, total loans included purchased
loans of $217 million of which $23 million were PCI loans.
At December 31, 2015, total loans outstanding from continuing operations were $59.9 billion, compared to $57.4
billion at the end of 2014, and $54.5 billion at the end of 2013. Loans related to the discontinued operations of
the education lending business and excluded from total loans were $1.8 billion at December 31, 2015, $2.3
billion at December 31, 2014, and $4.5 billion at December 31, 2013. Further information regarding our
discontinued operations is provided in Note 13 (“Acquisitions and Discontinued Operations”). 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 $44.3 billion at December 31, 2015, an increase of $2.9 billion, or 7.0%,
compared to December 31, 2014.
Commercial, financial and agricultural. As shown in Figure 15, our commercial, financial and agricultural
loans represent 52% and 49% of our total loan portfolio at December 31, 2015, and December 31, 2014,
respectively, and are the largest component of our total loans. These loans are originated by both Key Corporate
Bank and Key Community Bank and consist of fixed and variable rate loans to our large, middle market and
small business clients. These loans increased $3.3 billion, or 11.6%, from one year ago.
Figure 16 provides our commercial, financial and agricultural loans by industry classification as of
December 31, 2015, and December 31, 2014.
Figure 16. Commercial, Financial and Agricultural Loans
December 31, 2015 December 31, 2014
dollars in millions Amount
Percent
of Total Amount
Percent
of Total
Industry classification:
Services $ 6,722 21.5% $ 6,053 21.6%
Manufacturing 4,937 15.8 4,621 16.5
Financial services 3,073 9.8 2,844 10.2
Public utilities 2,581 8.3 1,938 6.9
Wholesale trade 2,302 7.4 2,294 8.2
Transportation 1,691 5.4 1,407 5.0
Dealer floor plan 1,447 4.6 1,439 5.2
Retail trade 1,231 3.9 1,089 3.9
Property management 1,059 3.4 834 3.0
Mining 802 2.6 946 3.4
Agriculture/forestry/fishing 712 2.3 675 2.4
Public administration 705 2.3 501 1.8
Building contractors 661 2.1 683 2.4
Insurance 389 1.2 257 .9
Communications 213 .7 196 .7
Other 2,715 8.7 2,205 7.9
Total $ 31,240 100.0% $ 27,982 100.0%
Commercial, financial and agricultural loans increased $3.3 billion, or 11.6%, from December 31, 2014, with
Key Corporate Bank increasing $3 billion and Key Community Bank up $340 million. We have experienced
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