Asset Quality (Tables)

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Nonperforming Assets and Past Due Loans

Our nonperforming assets and past due loans were as follows:

in millions	September 30, 2013		December 31, 2012		September 30, 2012
Total nonperforming loans (a), (b)	$	541	$	674	$	653
Nonperforming loans held for sale		13		25		19
OREO		15		22		29
Other nonperforming assets		10		14		17
Total nonperforming assets	$	579	$	735	$	718
Nonperforming assets from discontinued operations — education lending (c)	$	23	$	20	$	22
Restructured loans included in nonperforming loans (a)	$	228	$	249	$	217
Restructured loans with an allocated specific allowance (d)		104		114		78
Specifically allocated allowance for restructured loans (e)		46		33		31
Accruing loans past due 90 days or more	$	90	$	78	$	89
Accruing loans past due 30 through 89 days		288		424		354

(a) December 31, 2012 and September 30, 2012 loan balance includes $72 million and $38 million of current, paying as originally agreed, secured loans respectively, 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) September 30, 2013, December 31, 2012 and September 30, 2012 loan balances exclude $18 million, $23 million and $25 million of PCI loans, respectively.

(c) Includes approximately $11 million, $3 million and $3 million of restructured loans at September 30, 2013, December 31, 2012 and September 30, 2012, respectively. 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 September 30, 2013, December 31, 2012 and September 30, 2012:

September 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	$	58	$	116		—	$	74
Commercial real estate:
Commercial mortgage		43		80		—		66
Construction		41		124		—		45
Total commercial real estate loans		84		204		—		111
Total commercial loans with no related allowance recorded		142		320		—		185
Real estate — residential mortgage		16		16		—		16
Home equity:
Key Community Bank		69		69		—		69
Other		2		2		—		2
Total home equity loans		71		71		—		71
Consumer other:
Marine		3		3		—		3
Total consumer other		3		3		—		3
Total consumer loans		90		90		—		90
Total loans with no related allowance recorded		232		410		—		275
With an allowance recorded:
Commercial, financial and agricultural		50		51	$	17		36
Commercial real estate:
Commercial mortgage		3		3		1		4
Construction		3		13		—		2
Total commercial real estate loans		6		16		1		6
Total commercial loans with an allowance recorded		56		67		18		42
Real estate — residential mortgage		20		20		6		20
Home equity:
Key Community Bank		33		33		10		32
Other		11		11		2		10
Total home equity loans		44		44		12		42
Consumer other — Key Community Bank		3		3		—		3
Credit cards		6		6		1		5
Consumer other:
Marine		49		49		10		50
Other		1		1		—		1
Total consumer other		50		50		10		51
Total consumer loans		123		123		29		121
Total loans with an allowance recorded		179		190		47		163
Total	$	411	$	600	$	47	$	438

(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.

September 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	$	57	$	118		—	$	58
Commercial real estate:
Commercial mortgage		106		182		—		109
Construction		42		203		—		47
Total commercial real estate loans		148		385		—		156
Total commercial loans with no related allowance recorded		205		503		—		214
Real estate — residential mortgage		—		—		—		1
Home equity:
Key Community Bank		45		45		—		23
Other		2		2		—		1
Total home equity loans		47		47		—		24
Consumer other — Key Community Bank		1		1		—		1
Consumer other:
Marine		4		4		—		2
Total consumer other		4		4		—		2
Total consumer loans		52		52		—		28
Total loans with no related allowance recorded		257		555		—		242
With an allowance recorded:
Commercial, financial and agricultural		35		45	$	12		39
Commercial real estate:
Commercial mortgage		31		32		7		44
Construction		—		—		—		2
Total commercial real estate loans		31		32		7		46
Total commercial loans with an allowance recorded		66		77		19		85
Real estate — residential mortgage		18		18		1		17
Home equity:
Key Community Bank		20		20		10		16
Other		8		8		1		7
Total home equity loans		28		28		11		23
Consumer other — Key Community Bank		2		2		1		2
Consumer other:
Marine		56		56		7		53
Other		1		1		—		1
Total consumer other		57		57		7		54
Total consumer loans		105		105		20		96
Total loans with an allowance recorded		171		182		39		181
Total	$	428	$	737	$	39	$	423

(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 September 30, 2013, follows:

September 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		39	$	96	$	63
Commercial real estate:
Real estate — commercial mortgage		14		51		17
Real estate — construction		6		19		4
Total commercial real estate loans		20		70		21
Total commercial loans		59		166		84
Real estate — residential mortgage		401		24		24
Home equity:
Key Community Bank		1,677		89		85
Other		237		6		6
Total home equity loans		1,914		95		91
Consumer other — Key Community Bank		40		2		1
Credit cards		689		5		5
Consumer other:
Marine		346		42		22
Other		46		1		1
Total consumer other		392		43		23
Total consumer loans		3,436		169		144
Total nonperforming TDRs		3,495		335		228
Prior-year accruing (a)
Commercial, financial and agricultural		68		9		4
Commercial real estate:
Real estate — commercial mortgage		3		17		12
Real estate — construction		1		23		35
Total commercial real estate loans		4		40		47
Total commercial loans		72		49		51
Real estate — residential mortgage		118		13		13
Home equity:
Key Community Bank		162		18		17
Other		214		6		6
Total home equity loans		376		24		23
Consumer other — Key Community Bank		32		1		1
Credit cards		267		2		2
Consumer other:
Marine		276		32		30
Other		56		1		1
Total consumer other		332		33		31
Total consumer loans		1,125		73		70
Total prior-year accruing TDRs		1,197		122		121
Total TDRs		4,692	$	457	$	349

(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 September 30, 2012, follows:

September 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		91	$	107	$	54
Commercial real estate:
Real estate — commercial mortgage		18		47		29
Real estate — construction		8		53		30
Total commercial real estate loans		26		100		59
Total commercial loans		117		207		113
Real estate — residential mortgage		70		7		7
Home equity:
Key Community Bank		1,804		89		58
Other		486		11		7
Total home equity loans		2,290		100		65
Consumer other — Key Community Bank		125		2		2
Consumer other:
Marine		491		33		28
Other		91		2		2
Total consumer other		582		35		30
Total consumer loans		3,067		144		104
Total nonperforming TDRs		3,184		351		217
Prior-year accruing (a)
Commercial, financial and agricultural		152		15		7
Commercial real estate:
Real estate — commercial mortgage		7		71		45
Real estate — construction		1		15		—
Total commercial real estate loans		8		86		45
Total commercial loans		160		101		52
Real estate — residential mortgage		108		11		11
Home equity:
Key Community Bank		86		6		6
Other		95		3		3
Total home equity loans		181		9		9
Consumer other — Key Community Bank		20		—		—
Consumer other:
Marine		126		32		32
Other		51		2		2
Total consumer other		177		34		34
Total consumer loans		486		54		54
Total prior-year accruing TDRs		646		155		106
Total TDRs		3,830	$	506	$	323

(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	September 30, 2013		December 31, 2012		September 30, 2012
Commercial loans:
Interest rate reduction	$	104	$	104	$	145
Forgiveness of principal		5		7		7
Other modification of loan terms		26		7		14
Total	$	135	$	118	$	166
Consumer loans:
Interest rate reduction	$	110	$	122	$	92
Forgiveness of principal		5		6		7
Other modification of loan terms		99		74		58
Total	$	214	$	202	$	157
Total commercial and consumer TDRs (a)	$	349	$	320	$	323
Total loans		53,597		52,822		51,419

(a) Commitments outstanding to lend additional funds to borrowers whose terms have been modified in TDRs are $26 million, $32 million, and $47 million at September 30, 2013, December 31, 2012, and September 30, 2012, respectively. 

Past Due Loans Including Current Loans

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

September 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	$	24,161	$	33	$	9	$	12	$	102	$	156		—	$	24,317
Commercial real estate:
Commercial mortgage		7,429		22		2		31		58		113	$	2		7,544
Construction		1,038		3		—		—		17		20		—		1,058
Total commercial real estate loans		8,467		25		2		31		75		133		2		8,602
Commercial lease financing		4,472		41		7		8		22		78		—		4,550
Total commercial loans	$	37,100	$	99	$	18	$	51	$	199	$	367	$	2	$	37,469
Real estate — residential mortgage	$	2,045	$	22	$	9	$	10	$	98	$	139	$	14	$	2,198
Home equity:
Key Community Bank		9,994		50		29		12		198		289		2		10,285
Other		327		8		3		2		13		26		—		353
Total home equity loans		10,321		58		32		14		211		315		2		10,638
Consumer other — Key Community Bank		1,419		8		5		6		2		21		—		1,440
Credit cards		675		7		4		8		4		23		—		698
Consumer other:
Marine		1,034		17		6		1		25		49		—		1,083
Other		66		2		1		—		2		5		—		71
Total consumer other		1,100		19		7		1		27		54		—		1,154
Total consumer loans	$	15,560	$	114	$	57	$	39	$	342	$	552	$	16	$	16,128
Total loans	$	52,660	$	213	$	75	$	90	$	541	$	919	$	18	$	53,597

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.

September 30, 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	$	21,766	$	46	$	19	$	15	$	132	$	212	$	1	$	21,979
Commercial real estate:
Commercial mortgage		7,344		19		3		26		134		182		3		7,529
Construction		993		5		3		13		53		74		—		1,067
Total commercial real estate loans		8,337		24		6		39		187		256		3		8,596
Commercial lease financing		4,881		48		11		2		18		79		—		4,960
Total commercial loans	$	34,984	$	118	$	36	$	56	$	337	$	547	$	4	$	35,535
Real estate — residential mortgage	$	1,997	$	22	$	13	$	6	$	83	$	124	$	17	$	2,138
Home equity:
Key Community Bank		9,492		57		30		15		171		273		3		9,768
Other		374		9		5		3		18		35		—		409
Total home equity loans		9,866		66		35		18		189		308		3		10,177
Consumer other — Key Community Bank		1,290		9		4		6		3		22		1		1,313
Credit cards		692		6		4		—		8		18		—		710
Consumer other:
Marine		1,377		29		9		2		31		71		—		1,448
Other		92		2		1		1		2		6		—		98
Total consumer other		1,469		31		10		3		33		77		—		1,546
Total consumer loans	$	15,314	$	134	$	66	$	33	$	316	$	549	$	21	$	15,884
Total loans	$	50,298	$	252	$	102	$	89	$	653	$	1,096	$	25	$	51,419

(a) Includes $38 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.

Financing Receivable Credit Quality Indicators

Credit quality indicators for our commercial and consumer loan portfolios, excluding $18 million of PCI loans at September 30, 2013, based on bond rating, regulatory classification and payment activity as of September 30, 2013, and 2012 are as follows:

Commercial Credit Exposure

Credit Risk Profile by Creditworthiness Category ^(a)

September 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	$	292	$	166		—	$	1	$	1	$	1	$	454	$	465	$	747	$	633
A		774		755	$	73		63		1		1		866		1,107		1,714		1,926
BBB — BB		21,837		19,229		6,867		6,137		879		759		3,021		3,087		32,604		29,212
B		487		940		294		585		26		38		133		188		940		1,751
CCC — C		927		888		308		740		151		268		76		113		1,462		2,009
Total	$	24,317	$	21,978	$	7,542	$	7,526	$	1,058	$	1,067	$	4,550	$	4,960	$	37,467	$	35,531

(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)}

September 30, in millions
	Residential — Prime
GRADE	2013		2012
Pass	$	12,487	$	11,999
Substandard		333		296
Total	$	12,820	$	12,295

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

September 30, in millions	Consumer — Key Community Bank				Credit cards				Consumer — Marine				Consumer — Other				Total
	2013		2012		2013		2012		2013		2012		2013		2012		2013		2012
Performing	$	1,438	$	1,309	$	694	$	702	$	1,058	$	1,417	$	69	$	96	$	3,259	$	3,524
Nonperforming		2		3		4		8		25		31		2		2		33		44
Total	$	1,440	$	1,312	$	698	$	710	$	1,083	$	1,448	$	71	$	98	$	3,292	$	3,568

(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 September 30,						Nine months ended September 30,
in millions	2013			2012			2013			2012
Balance at beginning of period — continuing operations	$	876		$	888		$	888		$	1,004
Charge-offs		(78	)		(141	)		(242	)		(404	)
Recoveries		41			32			111			117
Net loans and leases charged off		(37	)		(109	)		(131	)		(287	)
Provision for loan and lease losses from continuing operations		28			109			111			172
Foreign currency translation adjustment		1			—			—			(1	)
Balance at end of period — continuing operations	$	868		$	888		$	868		$	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		September 30, 2013
Commercial, financial and agricultural	$	327	$	57		$	(44	)	$	30	$	370
Real estate — commercial mortgage		198		(28	)		(18	)		20		172
Real estate — construction		41		(17	)		(2	)		14		36
Commercial lease financing		55		24			(25	)		10		64
Total commercial loans		621		36			(89	)		74		642
Real estate — residential mortgage		30		17			(13	)		1		35
Home equity:
Key Community Bank		105		19			(50	)		8		82
Other		25		—			(16	)		5		14
Total home equity loans		130		19			(66	)		13		96
Consumer other — Key Community Bank		38		8			(24	)		5		27
Credit cards		26		30			(25	)		3		34
Consumer other:
Marine		39		1			(22	)		13		31
Other		4		—			(3	)		2		3
Total consumer other:		43		1			(25	)		15		34
Total consumer loans		267		75			(153	)		37		226
Total ALLL — continuing operations		888		111			(242	)		111		868
Discontinued operations		55		11			(42	)		14		38
Total ALLL — including discontinued operations	$	943	$	122		$	(284	)	$	125	$	906

in millions	December 31, 2011		Provision			Charge-offs			Recoveries		September 30, 2012
Commercial, financial and agricultural	$	334	$	9		$	(65	)	$	40	$	318
Real estate — commercial mortgage		272		—			(69	)		18		221
Real estate — construction		63		—			(19	)		3		47
Commercial lease financing		78		(10	)		(20	)		18		66
Total commercial loans		747		(1	)		(173	)		79		652
Real estate — residential mortgage		37		5			(19	)		2		25
Home equity:
Key Community Bank		103		92			(113	)		7		89
Other		29		14			(23	)		4		24
Total home equity loans		132		106			(136	)		11		113
Consumer other — Key Community Bank		41		15			(29	)		5		32
Credit cards		—		27			(2	)		—		25
Consumer other:
Marine		46		14			(41	)		18		37
Other		1		5			(4	)		2		4
Total consumer other:		47		19			(45	)		20		41
Total consumer loans		257		172			(231	)		38		236
Total ALLL — continuing operations		1,004		171	(a)		(404	)		117		888
Discontinued operations		104		4			(56	)		13		65
Total ALLL — including discontinued operations	$	1,108	$	175		$	(460	)	$	130	$	953

(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 September 30, 2013, follows:

	Allowance						Outstanding
September 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	$	17	$	353		—	$	24,317		$	108	$	24,209		—
Commercial real estate:
Commercial mortgage		1		171		—		7,544			46		7,496	$	2
Construction		—		36		—		1,058			44		1,014		—
Total commercial real estate loans		1		207		—		8,602			90		8,510		2
Commercial lease financing		—		64		—		4,550			—		4,550		—
Total commercial loans		18		624		—		37,469			198		37,269		2
Real estate — residential mortgage		6		28	$	1		2,198			36		2,148		14
Home equity:
Key Community Bank		10		72		—		10,285			102		10,181		2
Other		2		12		—		353			13		340		—
Total home equity loans		12		84		—		10,638			115		10,521		2
Consumer other — Key Community Bank		—		27		—		1,440			3		1,437		—
Credit cards		1		33		—		698			6		692		—
Consumer other:
Marine		10		21		—		1,083			52		1,031		—
Other		—		3		—		71			1		70		—
Total consumer other		10		24		—		1,154			53		1,101		—
Total consumer loans		29		196		1		16,128			213		15,899		16
Total ALLL — continuing operations		47		820		1		53,597			411		53,168		18
Discontinued operations		1		37		—		4,738	(a)		11		4,727		—
Total ALLL — including discontinued operations	$	48	$	857	$	1	$	58,335		$	422	$	57,895	$	18

(a) Amount includes $2.3 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 September 30, 2012, follows:

	Allowance						Outstanding
September 30, 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	$	306		—	$	21,979		$	92	$	21,886	$	1
Commercial real estate:
Commercial mortgage		7		214		—		7,529			138		7,388		3
Construction		—		47		—		1,067			42		1,025		—
Total commercial real estate loans		7		261		—		8,596			180		8,413		3
Commercial lease financing		—		66		—		4,960			—		4,960		—
Total commercial loans		19		633		—		35,535			272		35,259		4
Real estate — residential mortgage		1		24		—		2,138			18		2,103		17
Home equity:
Key Community Bank		10		79		—		9,768			65		9,700		3
Other		1		23		—		409			10		399		—
Total home equity loans		11		102		—		10,177			75		10,099		3
Consumer other — Key Community Bank		1		31		—		1,313			2		1,310		1
Credit cards		—		25				710			—		710		—
Consumer other:
Marine		7		30		—		1,448			60		1,388		—
Other		—		4		—		98			1		97		—
Total consumer other		7		34		—		1,546			61		1,485		—
Total consumer loans		20		216		—		15,884			156		15,707		21
Total ALLL — continuing operations		39		849		—		51,419			428		50,966		25
Discontinued operations		—		65		—		5,328	(a)		3		5,325		—
Total ALLL — including discontinued operations	$	39	$	914		—	$	56,747		$	431	$	56,291	$	25

(a) Amount includes $2.6 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 September 30,					Nine months ended September 30,
in millions	2013		2012			2013		2012
Balance at beginning of period	$	37	$	51		$	29	$	45
Provision (credit) for losses on lending-related commitments		3		(8	)		11		(2	)
Balance at end of period	$	40	$	43		$	40	$	43