3. Loans and Loans Held for Sale

Our loans by category are summarized as follows:


in millions	September 30, 2015		December 31, 2014		September 30, 2014
Commercial, financial and agricultural^(a)	$	31,095	$	27,982	$	26,683
Commercial real estate:
Commercial mortgage		8,180		8,047		8,276
Construction		1,070		1,100		1,036

Total commercial real estate loans		9,250		9,147		9,312
Commercial lease financing^(b)		3,929		4,252		4,135

Total commercial loans		44,274		41,381		40,130
Residential — prime loans:
Real estate — residential mortgage		2,267		2,225		2,213
Home equity:
Key Community Bank		10,282		10,366		10,380
Other		222		267		283

Total home equity loans		10,504		10,633		10,663

Total residential — prime loans		12,771		12,858		12,876
Consumer other — Key Community Bank		1,612		1,560		1,546
Credit cards		770		754		724
Consumer other:
Marine		620		779		828
Other		38		49		51

Total consumer other		658		828		879

Total consumer loans		15,811		16,000		16,025

Total loans^{(c) (d)}	$	60,085	$	57,381	$	56,155

(a)	Loan balances include $88 million, $88 million, and $90 million of commercial credit card balances at September 30, 2015, December 31, 2014, and September 30, 2014, respectively.

(b)

Commercial lease financing includes receivables held as collateral for a secured borrowing of $162 million, $302 million, and $367 million at September 30, 2015, December 31, 2014, and September 30, 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 September 30, 2015, total loans include purchased loans of $119 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 September 30, 2014, total loans include purchased loans of $143 million, of which $14 million were PCI loans.

(d)

Total loans exclude loans of $1.9 billion at September 30, 2015, $2.3 billion at December 31, 2014, and $2.4 billion at September 30, 2014, related to the discontinued operations of the education lending business. Additional information pertaining to these loans is provided in Note 11 (“Acquisitions and Discontinued Operations”).

Our loans held for sale are summarized as follows:


in millions	September 30, 2015		December 31, 2014		September 30, 2014
Commercial, financial and agricultural	$	74	$	63	$	30
Real estate — commercial mortgage		806		638		725
Commercial lease financing		10		15		10
Real estate — residential mortgage		26		18		19

Total loans held for sale ^(a)	$	916	$	734	$	784

(a)	Total loans held for sale exclude loans held for sale of $169 million at September 30, 2015, related to the discontinued operations of the education lending business. Additional information pertaining to these loans is provided in Note 11.

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


in millions	September 30, 2015			December 31, 2014			September 30, 2014
Balance at beginning of the period	$	835		$	784		$	435
New originations		1,673			2,465			1,593
Transfers from (to) held to maturity, net		24			2			—
Loan sales		(1,616	)		(2,516	)		(1,243	)
Loan draws (payments), net		—			(1	)		(1	)

Balance at end of period^(a)	$	916		$	734		$	784

(a)	Total loans held for sale exclude loans held for sale of $169 million at September 30, 2015, related to the discontinued operations of the education lending business. Additional information pertaining to these loans is provided in Note 11.