3. Loans and Loans Held for Sale

Our loans by category are summarized as follows:


in millions	March 31, 2015		December 31, 2014		March 31, 2014
Commercial, financial and agricultural^(a)	$	28,783	$	27,982	$	26,224
Commercial real estate:
Commercial mortgage		8,162		8,047		7,877
Construction		1,142		1,100		1,007

Total commercial real estate loans		9,304		9,147		8,884
Commercial lease financing^(b)		4,064		4,252		4,396

Total commercial loans		42,151		41,381		39,504
Residential — prime loans:
Real estate — residential mortgage		2,231		2,225		2,183
Home equity:
Key Community Bank		10,270		10,366		10,281
Other		253		267		315

Total home equity loans		10,523		10,633		10,596

Total residential — prime loans		12,754		12,858		12,779
Consumer other — Key Community Bank		1,547		1,560		1,436
Credit cards		727		754		698
Consumer other:
Marine		730		779		965
Other		44		49		63

Total consumer other		774		828		1,028

Total consumer loans		15,802		16,000		15,941

Total loans^{(c) (d)}	$	57,953	$	57,381	$	55,445

(a)	Loan balances include $87 million, $88 million, and $95 million of commercial credit card balances at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.

(b)

Commercial lease financing includes receivables held as collateral for a secured borrowing of $230 million, $302 million, and $124 million at March 31, 2015, December 31, 2014, and March 31, 2014, 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”) beginning on page 202 of our 2014 Form 10-K.

(c)

At March 31, 2015, total loans include purchased loans of $130 million, of which $12 million were PCI loans. At December 31, 2014, total loans include purchased loans of $138 million, of which $13 million were PCI loans. At March 31, 2014, total loans include purchased loans of $159 million, of which $16 million were PCI loans.

(d)	Total loans exclude loans of $2.2 billion at March 31, 2015, $2.3 billion at December 31, 2014, and $4.4 billion at March 31, 2014, related to the discontinued operations of the education lending business.

Our loans held for sale are summarized as follows:


in millions	March 31, 2015		December 31, 2014		March 31, 2014
Commercial, financial and agricultural	$	183	$	63	$	44
Real estate — commercial mortgage		1,408		638		333
Commercial lease financing		14		15		8
Real estate — residential mortgage		44		18		16

Total loans held for sale	$	1,649	$	734	$	401

Our quarterly summary of changes in loans held for sale follows:


in millions	March 31, 2015			December 31, 2014			March 31, 2014
Balance at beginning of the period	$	734		$	784		$	611
New originations		2,130			2,465			645
Transfers from (to) held to maturity, net		10			2			3
Loan sales		(1,204	)		(2,516	)		(596	)
Loan draws (payments), net		(21	)		(1	)		(262	)

Balance at end of period	$	1,649		$	734		$	401