Asset Quality (Tables)

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Nonperforming Assets and Past Due Loans

Our nonperforming assets and past due loans were as follows:

in millions	June 30,  2013		December 31,  2012		June 30,  2012
Total nonperforming loans (a), (b)	$	652	$	674	$	657
Nonperforming loans held for sale		14		25		38
OREO		18		22		28
Other nonperforming assets		9		14		28
Total nonperforming assets	$	693	$	735	$	751
Nonperforming assets from discontinued operations - education lending (c)	$	19	$	20	$	18
Restructured loans included in nonperforming loans (a)	$	195	$	249	$	163
Restructured loans with an allocated specific allowance (d)		65		114		71
Specifically allocated allowance for restructured loans (e)		30		33		34
Accruing loans past due 90 days or more	$	80	$	78	$	131
Accruing loans past due 30 through 89 days		251		424		362

(a) December 31, 2012 loan balance includes $72 million of performing secured loans that were discharged through Chapter 7 bankruptcy and not formally re-affirmed, as addressed in updated regulatory guidance issued in the third quarter of 2012. Such loans have been designated as nonperforming and TDRs.

(b) June 30, 2013 and December 31, 2012, loan balance exclude $19 million and $23 million of PCI loans, respectively.

(c) Includes approximately $8 million and $3 million of restructured loans at June 30, 2013 and December 31, 2012, respectively. There were no additional restructured loans at June 30, 2012. See Note 11 (“Acquisitions and Discontinued Operations”) for further discussion.

(d) Included in individually impaired loans allocated a specific allowance.

(e) Included in allowance for individually evaluated impaired loans.

Impaired Loans Evaluated for Specific Reserves

The following tables set forth a further breakdown of individually impaired loans as of June 30, 2013, December 31, 2012 and June 30, 2012:

June 30, 2013 in millions	Recorded             Investment		(a)	Unpaid Principal                 Balance		(b)	Specific                 Allowance		Average  Recorded              Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	89		$	140			—	$	91
Commercial real estate:
Commercial mortgage		88			138			—		88
Construction		50			157			—		49
Total commercial real estate loans		138			295			—		137
Total commercial loans with no related allowance recorded		227			435			—		228
Real estate — residential mortgage		16			16			—		16
Home equity:
Key Community Bank		69			69			—		66
Other		2			2			—		2
Total home equity loans		71			71			—		68
Consumer other:
Marine		3			3			—		3
Total consumer other		3			3			—		3
Total consumer loans		90			90			—		87
Total loans with no related allowance recorded		317			525			—		315
With an allowance recorded:
Commercial, financial and agricultural		22			31		$	6		18
Commercial real estate:
Commercial mortgage		5			6			2		7
Construction		2			12			—		1
Total commercial real estate loans		7			18			2		8
Total commercial loans with an allowance recorded		29			49			8		26
Real estate — residential mortgage		20			20			5		19
Home equity:
Key Community Bank		30			30			9		28
Other		10			10			1		10
Total home equity loans		40			40			10		38
Consumer other — Key Community Bank		3			3			1		3
Credit cards		4			4			—		4
Consumer other:
Marine		50			50			10		49
Other		1			1			—		1
Total consumer other		51			51			10		50
Total consumer loans		118			118			26		114
Total loans with an allowance recorded		147			167			34		140
Total	$	464		$	692		$	34	$	455

(a) The Recorded Investment in impaired loans represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our consolidated balance sheet.

(b) The Unpaid Principal Balance represents the customer's legal obligation to us.

December 31, 2012 in millions	Recorded             Investment		(a)	Unpaid Principal                 Balance		(b)	Specific                 Allowance		Average Recorded                 Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	32		$	64			—	$	60
Commercial real estate:
Commercial mortgage		89			142			—		95
Construction		48			182			—		39
Total commercial real estate loans		137			324			—		134
Total commercial loans with no related allowance recorded		169			388			—		194
Real estate — residential mortgage		21			21			—		10
Home equity:
Key Community Bank		65			65			—		33
Other		3			3			—		1
Total home equity loans		68			68			—		34
Total consumer loans		89			89			—		44
Total loans with no related allowance recorded		258			477			—		238
With an allowance recorded:
Commercial, financial and agricultural		33			42		$	12		48
Commercial real estate:
Commercial mortgage		7			7			1		51
Construction		—			—			—		6
Total commercial real estate loans		7			7			1		57
Total commercial loans with an allowance recorded		40			49			13		105
Real estate — residential mortgage		17			17			1		8
Home equity:
Key Community Bank		22			22			11		11
Other		9			9			1		5
Total home equity loans		31			31			12		16
Consumer other — Key Community Bank		2			2			2		1
Credit cards		2			2			—		1
Consumer other:
Marine		60			60			7		30
Other		1			1			—		1
Total consumer other		61			61			7		31
Total consumer loans		113			113			22		57
Total loans with an allowance recorded		153			162			35		162
Total	$	411		$	639		$	35	$	400

(a) The Recorded Investment in impaired loans represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our consolidated balance sheet.

(b) The Unpaid Principal Balance represents the customer’s legal obligation to us.

June 30, 2012 in millions	Recorded             Investment		(a)	Unpaid Principal                 Balance		(b)	Specific                 Allowance		Average Recorded             Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	59		$	142			—	$	68
Commercial real estate:
Commercial mortgage		112			199			—		113
Construction		51			204			—		49
Total commercial real estate loans		163			403			—		162
Total commercial loans with no related allowance recorded		222			545			—		230
Real estate — residential mortgage		1			1			—		1
Home equity:
Key Community Bank		—			—			—		—
Other		—			—			—		—
Total home equity loans		—			—			—		—
Consumer other — Key Community Bank		—			—			—		—
Credit cards		—			—			—		—
Consumer other:
Marine		—			—			—		—
Other		—			—			—		—
Total consumer other		—			—			—		—
Total consumer loans		1			1			—		1
Total loans with no related allowance recorded		223			546			—		231
With an allowance recorded:
Commercial, financial and agricultural		43			53		$	12		46
Commercial real estate:
Commercial mortgage		56			98			15		63
Construction		4			4			3		4
Total commercial real estate loans		60			102			18		67
Commercial lease financing		—			—			—		—
Total commercial loans with an allowance recorded		103			155			30		113
Real estate — residential mortgage		16			17			2		8
Home equity:
Key Community Bank		11			11			3		6
Other		6			6			1		3
Total home equity loans		17			17			4		9
Consumer other — Key Community Bank		2			2			1		1
Credit cards		—			—			—		—
Consumer other:
Marine		50			50			11		25
Other		—			—			—		—
Total consumer other		50			50			11		25
Total consumer loans		85			86			18		43
Total loans with an allowance recorded		188			241			48		156
Total	$	411		$	787		$	48	$	387

(a) The Recorded Investment in impaired loans represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our consolidated balance sheet.

(b) The Unpaid Principal Balance represents the customer's legal obligation to us.

Breakdown of Nonperforming TDRs by Loans Category

A further breakdown of TDRs included in nonperforming loans by loan category as of June 30, 2013, follows:

June 30, 2013 dollars in millions	Number of loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		43	$	53	$	24
Commercial real estate:
Real estate — commercial mortgage		15		58		21
Real estate — construction		6		19		5
Total commercial real estate loans		21		77		26
Total commercial loans		64		130		50
Real estate — residential mortgage		381		23		23
Home equity:
Key Community Bank		1,683		89		87
Other		262		8		8
Total home equity loans		1,945		97		95
Consumer other — Key Community Bank		54		2		2
Credit cards		506		3		3
Consumer other:
Marine		360		41		21
Other		48		2		1
Total consumer other		408		43		22
Total consumer loans		3,294		168		145
Total nonperforming TDRs		3,358		298		195
Prior-year accruing (a)
Commercial, financial and agricultural		87		10		5
Commercial real estate:
Real estate — commercial mortgage		4		22		15
Real estate — construction		1		23		32
Total commercial real estate loans		5		45		47
Total commercial loans		92		55		52
Real estate — residential mortgage		118		12		12
Home equity:
Key Community Bank		134		14		14
Other		178		5		5
Total home equity loans		312		19		19
Consumer other — Key Community Bank		26		1		1
Credit cards		309		2		2
Consumer other:
Marine		243		29		28
Other		49		2		2
Total consumer other		292		31		30
Total consumer loans		1,057		65		64
Total prior-year accruing TDRs		1,149		120		116
Total TDRs		4,507	$	418	$	311

(a) All TDRs that were restructured prior to January 1, 2013, and are fully accruing.

A further breakdown of TDRs included in nonperforming loans by loan category as of December 31, 2012, follows:

December 31, 2012 dollars in millions	Number of loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		82	$	76	$	39
Commercial real estate:
Real estate — commercial mortgage		15		62		25
Real estate — construction		8		53		33
Total commercial real estate loans		23		115		58
Total commercial loans		105		191		97
Real estate — residential mortgage		372		28		28
Home equity:
Key Community Bank		1,577		87		82
Other		322		9		8
Total home equity loans		1,899		96		90
Consumer other — Key Community Bank		28		1		1
Credit cards		405		3		3
Consumer other:
Marine		251		30		29
Other		34		1		1
Total consumer other		285		31		30
Total consumer loans		2,989		159		152
Total nonperforming TDRs		3,094		350		249
Prior-year accruing (a)
Commercial, financial and agricultural		122		12		6
Commercial real estate:
Real estate — commercial mortgage		4		22		15
Total commercial real estate loans		4		22		15
Total commercial loans		126		34		21
Real estate — residential mortgage		101		10		10
Home equity:
Key Community Bank		76		5		5
Other		84		3		3
Total home equity loans		160		8		8
Consumer other — Key Community Bank		16		—		—
Consumer other:
Marine		117		31		31
Other		43		1		1
Total consumer other		160		32		32
Total consumer loans		437		50		50
Total prior-year accruing TDRs		563		84		71
Total TDRs		3,657	$	434	$	320

(a) All TDRs that were restructured prior to January 1, 2012, and are fully accruing.

A further breakdown of TDRs included in nonperforming loans by loan category as of June 30, 2012, follows:

June 30, 2012 dollars in millions	Number of loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		95	$	108	$	59
Commercial real estate:
Real estate — commercial mortgage		16		47		31
Real estate — construction		11		60		43
Total commercial real estate loans		27		107		74
Total commercial loans		122		215		133
Real estate — residential mortgage		56		7		7
Home equity:
Key Community Bank		50		4		4
Other		74		2		1
Total home equity loans		124		6		5
Consumer other — Key Community Bank		11		1		1
Consumer other:
Marine		139		17		17
Other		11		1		—
Total consumer other		150		18		17
Total consumer loans		341		32		30
Total nonperforming TDRs		463		247		163
Prior-year accruing (a)
Commercial, financial and agricultural		115		8		6
Commercial real estate:
Real estate — commercial mortgage		7		71		48
Real estate — construction		1		15		1
Total commercial real estate loans		8		86		49
Total commercial loans		123		94		55
Real estate — residential mortgage		111		11		11
Home equity:
Key Community Bank		88		7		7
Other		101		3		3
Total home equity loans		189		10		10
Consumer other — Key Community Bank		20		1		—
Consumer other:
Marine		135		34		33
Other		53		2		2
Total consumer other		188		36		35
Total consumer loans		508		58		56
Total prior-year accruing TDRs		631		152		111
Total TDRs		1,094	$	399	$	274

(a) All TDRs that were restructured prior to January 1, 2012, and are fully accruing.

Concession Types for Our Commercial Accruing and Nonaccruing TDRs

The following table shows the concession types for our commercial and consumer accruing and nonaccruing TDRs and other selected financial data.

dollars in millions	June 30,  2013		December 31,  2012		June 30,  2012
Commercial loans:
Interest rate reduction	$	88	$	104	$	155
Forgiveness of principal		6		7		13
Other modification of loan terms		8		7		20
Total	$	102	$	118	$	188
Consumer loans:
Interest rate reduction	$	104	$	122	$	81
Forgiveness of principal		5		6		5
Other modification of loan terms		100		74		—
Total	$	209	$	202	$	86
Total commercial and consumer TDRs (a)	$	311	$	320	$	274
Total loans		53,101		52,822		49,605

(a) Commitments outstanding to lend additional funds to borrowers whose terms have been modified in TDRs are $25 million, $32 million, and $45 million at June 30, 2013, December 31, 2012, and June 30, 2012, respectively.

Past Due Loans Including Current Loans

The following aging analysis as of June 30, 2013, December 31, 2012, and June 30, 2012, of past due and current loans provides further information regarding Key's credit exposure.

June 30, 2013 in millions	Current		30-59     Days Past     Due		60-89     Days Past     Due		90 and Greater     Days Past     Due		Nonperforming     Loans		Total Past Due and     Nonperforming     Loans		Purchased     Credit Impaired		Total           Loans
LOAN TYPE
Commercial, financial and agricultural	$	23,512	$	37	$	9	$	11	$	146	$	203		—	$	23,715
Commercial real estate:
Commercial mortgage		7,307		16		5		38		106		165	$	2		7,474
Construction		1,031		3		—		—		26		29		—		1,060
Total commercial real estate loans		8,338		19		5		38		132		194		2		8,534
Commercial lease financing		4,734		14		7		5		14		40		—		4,774
Total commercial loans	$	36,584	$	70	$	21	$	54	$	292	$	437	$	2	$	37,023
Real estate — residential mortgage	$	2,037	$	20	$	7	$	3	$	94	$	124	$	15	$	2,176
Home equity:
Key Community Bank		9,877		51		25		13		205		294		2		10,173
Other		347		7		3		2		16		28		—		375
Total home equity loans		10,224		58		28		15		221		322		2		10,548
Consumer other — Key Community Bank		1,403		9		3		6		3		21		—		1,424
Credit cards		680		6		4		—		11		21		—		701
Consumer other:
Marine		1,106		18		5		1		30		54		—		1,160
Other		65		2		—		1		1		4		—		69
Total consumer other		1,171		20		5		2		31		58		—		1,229
Total consumer loans	$	15,515	$	113	$	47	$	26	$	360	$	546	$	17	$	16,078
Total loans	$	52,099	$	183	$	68	$	80	$	652	$	983	$	19	$	53,101
December 31, 2012 in millions	Current		30-59     Days Past     Due		60-89     Days Past     Due		90 and Greater     Days Past     Due		Nonperforming     Loans (a)		Total Past Due and     Nonperforming     Loans		Purchased     Credit Impaired		Total           Loans
LOAN TYPE
Commercial, financial and agricultural	$	23,030	$	56	$	34	$	22	$	99	$	211	$	1	$	23,242
Commercial real estate:
Commercial mortgage		7,556		21		11		9		120		161		3		7,720
Construction		943		1		2		1		56		60		—		1,003
Total commercial real estate loans		8,499		22		13		10		176		221		3		8,723
Commercial lease financing		4,772		88		31		8		16		143		—		4,915
Total commercial loans	$	36,301	$	166	$	78	$	40	$	291	$	575	$	4	$	36,880
Real estate — residential mortgage	$	2,023	$	16	$	10	$	6	$	103	$	135	$	16	$	2,174
Home equity:
Key Community Bank		9,506		54		26		17		210		307		3		9,816
Other		387		9		4		2		21		36		—		423
Total home equity loans		9,893		63		30		19		231		343		3		10,239
Consumer other — Key Community Bank		1,325		9		5		8		2		24		—		1,349
Credit cards		706		7		5		—		11		23		—		729
Consumer other:
Marine		1,288		23		9		4		34		70		—		1,358
Other		87		2		1		1		2		6		—		93
Total consumer other		1,375		25		10		5		36		76		—		1,451
Total consumer loans	$	15,322	$	120	$	60	$	38	$	383	$	601	$	19	$	15,942
Total loans	$	51,623	$	286	$	138	$	78	$	674	$	1,176	$	23	$	52,822

(a) Includes $72 million of performing secured loans that were discharged through Chapter 7 bankruptcy and not formally re-affirmed as addressed in updated regulatory guidance issued in the third quarter of 2012. Such loans have been designated as nonperforming and TDRs.

June 30, 2012 in millions	Current		30-59     Days Past     Due		60-89     Days Past     Due		90 and Greater     Days Past Due		Nonperforming     Loans		Total Past Due and     Nonperforming     Loans		Total           Loans
LOAN TYPE
Commercial, financial and agricultural	$	20,678	$	60	$	13	$	24	$	141	$	238	$	20,916
Commercial real estate:
Commercial mortgage		7,182		15		16		24		172		227		7,409
Construction		1,033		12		24		35		68		139		1,172
Total commercial real estate loans		8,215		27		40		59		240		366		8,581
Commercial lease financing		5,051		22		8		7		18		55		5,106
Total commercial loans	$	33,944	$	109	$	61	$	90	$	399	$	659	$	34,603
Real estate — residential mortgage	$	1,895	$	24	$	10	$	9	$	78	$	121	$	2,016
Home equity:
Key Community Bank		9,361		56		26		17		141		240		9,601
Other		445		10		4		3		17		34		479
Total home equity loans		9,806		66		30		20		158		274		10,080
Consumer other — Key Community Bank		1,237		13		4		7		2		26		1,263
Consumer other:
Marine		1,478		31		10		4		19		64		1,542
Other		95		2		2		1		1		6		101
Total consumer other		1,573		33		12		5		20		70		1,643
Total consumer loans	$	14,511	$	136	$	56	$	41	$	258	$	491	$	15,002
Total loans	$	48,455	$	245	$	117	$	131	$	657	$	1,150	$	49,605

Financing Receivable Credit Quality Indicators

Credit quality indicators for our commercial and consumer loan portfolios, excluding $19 million of PCI loans at June 30, 2013, based on bond rating, regulatory classification and payment activity as of June 30, 2013, and 2012 are as follows:

Commercial Credit Exposure

Credit Risk Profile by Creditworthiness Category ^(a)

June 30, in millions
	Commercial, financial and agricultural				RE — Commercial				RE — Construction				Commercial Lease				Total
RATING (b) (c)	2013		2012		2013		2012		2013		2012		2013		2012		2013		2012
AAA — AA	$	275	$	165	$	1		—	$	1	$	1	$	485	$	605	$	762	$	771
A		618		680		74	$	64		1		1		1,011		992		1,704		1,737
BBB — BB		21,355		18,182		6,600		5,925		871		791		3,046		3,179		31,872		28,077
B		560		868		364		553		23		58		145		197		1,092		1,676
CCC — C		907		1,021		433		867		164		321		87		133		1,591		2,342
Total	$	23,715	$	20,916	$	7,472	$	7,409	$	1,060	$	1,172	$	4,774	$	5,106	$	37,021	$	34,603

(a) Credit quality indicators are updated on an ongoing basis and reflect credit quality information as of the dates indicated.

(b) Our bond rating to internal loan grade conversion system is as follows: AAA - AA = 1, A = 2, BBB - BB = 3 - 13, B = 14 - 16, and CCC - C = 17 - 20.

(c) Our internal loan grade to regulatory-defined classification is as follows: Pass = 1-16, Special Mention = 17, Substandard = 18, Doubtful = 19, and Loss = 20.

Consumer Credit Exposure

Credit Risk Profile by Regulatory Classifications ^{(a) (b)}

June 30, in millions
	Residential — Prime
GRADE	2013		2012
Pass	$	12,374	$	11,831
Substandard		333		265
Total	$	12,707	$	12,096

Credit Risk Profile Based on Payment Activity ^{(a) (b)}

June 30,	Consumer — Key Community Bank				Credit cards				Consumer — Marine				Consumer — Other				Total
in millions	2013		2012		2013		2012		2013		2012		2013		2012		2013		2012
Performing	$	1,421	$	1,261	$	690		—	$	1,130	$	1,523	$	68	$	100	$	3,309	$	2,884
Nonperforming		3		2		11		—		30		19		1		1		45		22
Total	$	1,424	$	1,263	$	701		—	$	1,160	$	1,542	$	69	$	101	$	3,354	$	2,906

(a) Credit quality indicators are updated on an ongoing basis and reflect credit quality information as of the dates indicated.

(b) Our past due payment activity to regulatory classification conversion is as follows: pass = less than 90 days; and substandard = 90 days and greater plus nonperforming loans. Beginning in the second quarter of 2012, any second lien home equity loan with an associated first lien that is 120 days or more past due or in foreclosure or for which the first mortgage delinquency timeframe is unknown, is reported as a nonperforming loan in accordance with regulatory guidance issued in January 2012.

Summary of Allowance for Loan and Lease Losses

A summary of the allowance for loan and lease losses for the periods indicated is presented in the table below:

	Three months ended June 30,				Six months ended     June 30,
in millions	2013		2012		2013		2012
Balance at beginning of period — continuing operations	$	893	$	944	$	888	$	1,004
Charge-offs		(74)		(131)		(164)		(263)
Recoveries		29		54		70		85
Net loans and leases charged off		(45)		(77)		(94)		(178)
Provision for loan and lease losses from continuing operations		28		21		83		63
Foreign currency translation adjustment		—		—		(1)		(1)
Balance at end of period — continuing operations	$	876	$	888	$	876	$	888

Changes in Allowance for Loan and Lease Losses by Loan Category

The changes in the ALLL by loan category for the periods indicated are as follows:

in millions	December 31, 2012		Provision			Charge-offs		Recoveries		June 30, 2013
Commercial, financial and agricultural	$	327	$	35		$	(29)	$	19	$	352
Real estate — commercial mortgage		198		(10)			(16)		10		182
Real estate — construction		41		(13)			(2)		8		34
Commercial lease financing		55		6			(8)		8		61
Total commercial loans		621		18			(55)		45		629
Real estate — residential mortgage		30		13			(10)		—		33
Home equity:
Key Community Bank		105		19			(36)		6		94
Other		25		—			(12)		3		16
Total home equity loans		130		19			(48)		9		110
Consumer other — Key Community Bank		38		7			(16)		4		33
Credit cards		26		21			(16)		2		33
Consumer other:
Marine		39		4			(17)		9		35
Other		4		—			(2)		1		3
Total consumer other:		43		4			(19)		10		38
Total consumer loans		267		64			(109)		25		247
Total ALLL — continuing operations		888		82	(a)		(164)		70		876
Discontinued operations		55		5			(28)		9		41
Total ALLL — including discontinued operations	$	943	$	87		$	(192)	$	79	$	917

(a) Includes $1 million of foreign currency translation adjustment.

in millions	December 31,  2011		Provision			Charge-offs		Recoveries		June 30,  2012
Commercial, financial and agricultural	$	334	$	(12)		$	(49)	$	31	$	304
Real estate — commercial mortgage		272		8			(46)		16		250
Real estate — construction		63		6			(16)		2		55
Commercial lease financing		78		—			(20)		10		68
Total commercial loans		747		2			(131)		59		677
Real estate — residential mortgage		37		—			(13)		2		26
Home equity:
Key Community Bank		103		21			(48)		4		80
Other		29		9			(17)		3		24
Total home equity loans		132		30			(65)		7		104
Consumer other — Key Community Bank		41		10			(20)		3		34
Consumer other:
Marine		46		15			(30)		13		44
Other		1		5			(4)		1		3
Total consumer other:		47		20			(34)		14		47
Total consumer loans		257		60			(132)		26		211
Total ALLL — continuing operations		1,004		62	(a)		(263)		85		888
Discontinued operations		104		6			(39)		8		79
Total ALLL — including discontinued operations	$	1,108	$	68		$	(302)	$	93	$	967

(a) Includes $1 million of foreign currency translation adjustment.

Allowance for Loan and Lease Losses and Corresponding Loan Balances

A breakdown of the individual and collective ALLL and the corresponding loan balances as of June 30, 2013, follows:

	Allowance						Outstanding
June 30, 2013 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired
Commercial, financial and agricultural	$	6	$	346		—	$	23,715		$	111	$	23,604		—
Commercial real estate:
Commercial mortgage		2		180		—		7,474			93		7,379	$	2
Construction		—		34		—		1,060			52		1,008		—
Total commercial real estate loans		2		214		—		8,534			145		8,387		2
Commercial lease financing		—		61		—		4,774			—		4,774		—
Total commercial loans		8		621		—		37,023			256		36,765		2
Real estate — residential mortgage		5		28		—		2,176			35		2,126		15
Home equity:
Key Community Bank		9		85		—		10,173			99		10,072		2
Other		1		15		—		375			13		362		—
Total home equity loans		10		100		—		10,548			112		10,434		2
Consumer other — Key Community Bank		—		33		—		1,424			3		1,421		—
Credit cards		—		33		—		701			4		697		—
Consumer other:
Marine		10		25		—		1,160			53		1,107		—
Other		1		2		—		69			1		68		—
Total consumer other		11		27		—		1,229			54		1,175		—
Total consumer loans		26		221		—		16,078			208		15,853		17
Total ALLL — continuing operations		34		842		—		53,101			464		52,618		19
Discontinued operations		2		39		—		4,992	(a)		8		4,984		—
Total ALLL — including discontinued operations	$	36	$	881		—	$	58,093		$	472	$	57,602	$	19

(a) Amount includes $2.5 billion of loans carried at fair value that are excluded from ALLL consideration.

A breakdown of the individual and collective ALLL and the corresponding loan balances as of December 31, 2012, follows:

	Allowance						Outstanding
December 31, 2012 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired
Commercial, financial and agricultural	$	12	$	314		—	$	23,242		$	65	$	23,176	$	1
Commercial real estate:
Commercial mortgage		1		198		—		7,720			96		7,621		3
Construction		—		41		—		1,003			48		955		—
Total commercial real estate loans		1		239		—		8,723			144		8,576		3
Commercial lease financing		—		55		—		4,915			—		4,915		—
Total commercial loans		13		608		—		36,880			209		36,667		4
Real estate — residential mortgage		1		29	$	1		2,174			38		2,120		16
Home equity:
Key Community Bank		11		94		—		9,816			87		9,726		3
Other		1		24		—		423			12		411		—
Total home equity loans		12		118		—		10,239			99		10,137		3
Consumer other — Key Community Bank		2		36		—		1,349			2		1,347		—
Credit cards		—		26		—		729			2		727		—
Consumer other:
Marine		7		32		—		1,358			60		1,298		—
Other		—		3		—		93			1		92		—
Total consumer other		7		35		—		1,451			61		1,390		—
Total consumer loans		22		244		1		15,942			202		15,721		19
Total ALLL — continuing operations		35		852		1		52,822			411		52,388		23
Discontinued operations		—		55		—		5,201	(a)		3		5,198		—
Total ALLL — including discontinued operations	$	35	$	907	$	1	$	58,023		$	414	$	57,586	$	23

(a) Amount includes $2.5 billion of loans carried at fair value that are excluded from ALLL consideration.

A breakdown of the individual and collective ALLL and the corresponding loan balances as of June 30, 2012, follows:

	Allowance(a)				Outstanding(a)
June 30, 2012 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment
Commercial, financial and agricultural	$	12	$	292	$	20,916		$	102	$	20,814
Commercial real estate:
Commercial mortgage		15		235		7,409			168		7,241
Construction		3		52		1,172			55		1,117
Total commercial real estate loans		18		287		8,581			223		8,358
Commercial lease financing		—		68		5,106			—		5,106
Total commercial loans		30		647		34,603			325		34,278
Real estate — residential mortgage		2		24		2,016			17		1,999
Home equity:
Key Community Bank		3		77		9,601			11		9,590
Other		1		23		479			6		473
Total home equity loans		4		100		10,080			17		10,063
Consumer other — Key Community Bank		1		33		1,263			2		1,261
Consumer other:
Marine		11		33		1,542			50		1,492
Other		—		3		101			—		101
Total consumer other		11		36		1,643			50		1,593
Total consumer loans		18		193		15,002			86		14,916
Total ALLL — continuing operations		48		840		49,605			411		49,194
Discontinued operations		—		79		5,483	(b)		—		5,483
Total ALLL — including discontinued operations	$	48	$	919	$	55,088		$	411	$	54,677

(a) There were no PCI loans at June 30, 2012.

(b) Amount includes $2.8 billion of loans carried at fair value that are excluded from ALLL considerations.

Changes in Liability for Credit Losses on Lending Related Commitments

Changes in the liability for credit losses on unfunded lending-related commitments are summarized as follows:

	Three months ended June 30,				Six months ended June 30,
in millions	2013		2012		2013		2012
Balance at beginning of period	$	32	$	45	$	29	$	45
Provision (credit) for losses on lending-related commitments		5		6		8		6
Balance at end of period	$	37	$	51	$	37	$	51