Loans and Loans Held for Sale

12 Months Ended

Dec. 31, 2011

Loans and Loans Held for Sale [Abstract]

Loans and Loans Held for Sale

4. Loans and Loans Held for Sale

Our loans by category are summarized as follows:

December 31,
in millions	2011		2010
Commercial, financial and agricultural	$	19,378	$	16,441
Commercial real estate:
Commercial mortgage		8,037		9,502
Construction		1,312		2,106
Total commercial real estate loans		9,349		11,608
Commercial lease financing		6,055		6,471
Total commercial loans		34,782		34,520
Residential-Prime Loans:
Real estate — residential mortgage		1,946		1,844
Home equity:
Key Community Bank		9,229		9,514
Other		535		666
Total home equity loans		9,764		10,180
Total residential-prime loans		11,710		12,024
Consumer other — Key Community Bank		1,192		1,167
Consumer other:
Marine		1,766		2,234
Other		125		162
Total consumer other		1,891		2,396
Total consumer loans		14,793		15,587
Total loans (a)	$	49,575	$	50,107

(a) Excludes loans in the amount of $5.8 billion at December 31, 2011, and $6.5 billion at December 31, 2010, related to the discontinued operations of the education lending business.

We use interest rate swaps, which modify the repricing characteristics of certain loans, to manage interest rate risk. For more information about such swaps, see Note 8 (“Derivatives and Hedging Activities”).

Our loans held for sale by category are summarized as follows:

December 31,
in millions	2011		2010
Commercial, financial and agricultural	$	19	$	196
Real estate — commercial mortgage		567		118
Real estate — construction		35		35
Commercial lease financing		12		8
Real estate — residential mortgage		95		110
Total loans held for sale (a)	$	728	$	467

(a) Excluded at December 31, 2010, are loans held for sale in the amount of $15 million related to the discontinued operations of the education lending business. There were no loans held for sale in the discontinued operations of the education lending business at December 31, 2011.

Our summary of changes in loans held for sale follows:

December 31,
in millions	2011		2010
Balance at beginning of the year	$	467	$	443
New originations		3,982		3,058
Transfers from held to maturity, net		90		376
Loan sales		(3,721)		(3,209)
Loan draws (payments), net		(60)		(120)
Transfers to OREO / valuation adjustments		(30)		(81)
Balance at end of year	$	728	$	467

Commercial and consumer leasing 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	2011		2010
Direct financing lease receivables	$	4,143	$	4,612
Unearned income		(368)		(472)
Unguaranteed residual value		308		380
Deferred fees and costs		31		44
Net investment in direct financing leases	$	4,114	$	4,564

At December 31, 2011, minimum future lease payments to be received are as follows: 2012 — $1.4 billion; 2013 — $1.0 billion; 2014 — $624 million; 2015 — $368 million; 2016 — 217 million; and all subsequent years — $477 million. The allowance related to lease financing receivables is $78 million at December 31, 2011.