Asset Quality (Tables)

3 Months Ended

Mar. 31, 2013

Receivables [Abstract]

Nonperforming Assets and Past Due Loans

Our nonperforming assets and past due loans were as follows:

in millions	March  31,                    2013		December 31,             2012		March  31,                    2012
Total nonperforming loans (a), (b)	$	650	$	674	$	666
Nonperforming loans held for sale		23		25		24
OREO		21		22		61
Other nonperforming assets		11		14		16
Total nonperforming assets	$	705	$	735	$	767
Nonperforming assets from discontinued operations - education lending (c)	$	15	$	20	$	19
Restructured loans included in nonperforming loans (a)	$	178	$	249	$	184
Restructured loans with an allocated specific allowance (d)		52		114		47
Specifically allocated allowance for restructured loans (e)		30		33		18
Accruing loans past due 90 days or more	$	83	$	78	$	169
Accruing loans past due 30 through 89 days		368		424		420

(a) December 31, 2012, 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) March 31, 2013 and December 31, 2012, excludes $22 million and $23 million of PCI loans, respectively.

(c) Includes approximately $4 million and $3 million of restructured loans at March 31, 2013 and December 31, 2012, respectively. There were no additional restructured loans at March 31, 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 March 31, 2013, December 31, 2012 and March 31, 2012:

March 31, 2013 in millions	Recorded                Investment		(a)	Unpaid  Principal                  Balance		(b)	Specific                  Allowance		Average  Recorded                  Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	93		$	131			—	$	63
Commercial real estate:
Commercial mortgage		87			140			—		88
Construction		48			175			—		48
Total commercial real estate loans		135			315			—		136
Total commercial loans with no related allowance recorded		228			446			—		199
Real estate — residential mortgage		15			15			—		18
Home equity:
Key Community Bank		64			64			—		65
Other		2			2			—		2
Total home equity loans		66			66			—		67
Consumer other:
Marine		3			3			—		1
Total consumer other		3			3			—		1
Total consumer loans		84			84			—		86
Total loans with no related allowance recorded		312			530			—		285
With an allowance recorded:
Commercial, financial and agricultural		15			23		$	8		24
Commercial real estate:
Commercial mortgage		9			9			3		8
Construction		—			9			—		—
Total commercial real estate loans		9			18			3		8
Total commercial loans with an allowance recorded		24			41			11		32
Real estate — residential mortgage		18			18			1		18
Home equity:
Key Community Bank		26			25			14		24
Other		10			10			—		10
Total home equity loans		36			35			14		34
Consumer other — Key Community Bank		3			3			1		2
Credit cards		4			4			1		3
Consumer other:
Marine		47			47			5		53
Other		1			1			1		1
Total consumer other		48			48			6		54
Total consumer loans		109			108			23		111
Total loans with an allowance recorded		133			149			34		143
Total	$	445		$	679		$	34	$	428

(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.

March 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	$	77		$	189			—	$	83
Commercial real estate:
Commercial mortgage		113			252			—		106
Construction		47			164			—		39
Total commercial real estate loans		160			416			—		145
Total commercial loans with no related allowance recorded		237			605			—		228
Real estate — residential mortgage		—			—			—		—
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		—			—			—		—
Total loans with no related allowance recorded		237			605			—		228
With an allowance recorded:
Commercial, financial and agricultural		49			60		$	19		55
Commercial real estate:
Commercial mortgage		69			111			16		83
Construction		4			4			3		8
Total commercial real estate loans		73			115			19		91
Commercial lease financing		—			—			—		—
Total commercial loans with an allowance recorded		122			175			38		146
Real estate — residential mortgage		—			—			—		—
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		—			—			—		—
Total loans with an allowance recorded		122			175			38		146
Total	$	359		$	780		$	38	$	374

(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 March 31, 2013, follows:

March 31, 2013 dollars in millions	Number of loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		48	$	58	$	25
Commercial real estate:
Real estate — commercial mortgage		17		61		23
Real estate — construction		6		30		4
Total commercial real estate loans		23		91		27
Total commercial loans		71		149		52
Real estate — residential mortgage		347		21		21
Home equity:
Key Community Bank		1,479		75		74
Other		229		6		6
Total home equity loans		1,708		81		80
Consumer other — Key Community Bank		59		2		2
Credit cards		360		2		2
Consumer other:
Marine		302		41		20
Other		36		1		1
Total consumer other		338		42		21
Total consumer loans		2,812		148		126
Total nonperforming TDRs		2,883		297		178
Prior-year accruing (a)
Commercial, financial and agricultural		106		11		5
Commercial real estate:
Real estate — commercial mortgage		4		22		15
Real estate — construction		1		23		29
Total commercial real estate loans		5		45		44
Total commercial loans		111		56		49
Real estate — residential mortgage		121		12		12
Home equity:
Key Community Bank		147		15		15
Other		190		6		5
Total home equity loans		337		21		20
Consumer other — Key Community Bank		24		1		1
Credit cards		308		2		2
Consumer other:
Marine		263		30		30
Other		57		2		2
Total consumer other		320		32		32
Total consumer loans		1,110		68		67
Total prior-year accruing TDRs		1,221		124		116
Total TDRs		4,104	$	421	$	294

(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 March 31, 2012, follows:

			Pre-modification		Post-modification
			Outstanding		Outstanding
March 31, 2012	Number		Recorded		Recorded
dollars in millions	of loans		Investment		Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		102	$	105	$	64
Commercial real estate:
Real estate — commercial mortgage		16		102		64
Real estate — construction		8		35		19
Total commercial real estate loans		24		137		83
Total commercial loans		126		242		147
Real estate — residential mortgage		43		5		5
Home equity:
Key Community Bank		27		3		3
Other		32		1		1
Total home equity loans		59		4		4
Consumer other — Key Community Bank		2		—		—
Consumer other:
Marine		48		28		28
Other		6		—		—
Total consumer other		54		28		28
Total consumer loans		158		37		37
Total nonperforming TDRs		284		279		184
Prior-year accruing (a)
Commercial, financial and agricultural		176		20		11
Commercial real estate:
Real estate — commercial mortgage		7		75		57
Real estate — construction		1		15		2
Total commercial real estate loans		8		90		59
Total commercial loans		184		110		70
Real estate — residential mortgage		113		12		12
Home equity:
Key Community Bank		88		7		7
Other		104		3		3
Total home equity loans		192		10		10
Consumer other — Key Community Bank		19		—		—
Consumer other:
Marine		140		15		15
Other		51		2		2
Total consumer other		191		17		17
Total consumer loans		515		39		39
Total prior-year accruing TDRs		699		149		109
Total TDRs		983	$	428	$	293

(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 accruing and nonaccruing TDRs and other selected financial data.

dollars in millions	March 31,  2013			December 31,  2012			March 31,  2012
Interest rate reduction	$	85		$	104		$	184
Forgiveness of principal		10			7			11
Other modification of loan terms		6			7			22
Total	$	101		$	118		$	217
Total commercial and consumer TDRs (a), (b)	$	294		$	320		$	293
Total commercial TDRs to total commercial loans		.27	%		.32	%		.63	%
Total commercial TDRs to total loans		.19			.22			.44
Total commercial loans	$	36,809		$	36,880		$	34,622
Total loans		52,574			52,822			49,226

(a) Commitments outstanding to lend additional funds to borrowers whose terms have been modified in TDRs are $33 million, $32 million, and $24 million at March 31, 2013, December 31, 2012, and March 31, 2012, respectively.

(b) Concession types for consumer accruing and nonaccruing TDRs consisted primarily of interest rate reductions and modifications due to updated regulatory guidance in the quarters ended March 31, 2013, December 31, 2012, and March 31, 2012, respectively.

Past Due Loans Including Current Loans

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

March 31, 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	$	23,134	$	35	$	74	$	26	$	142	$	277	$	1	$	23,412
Commercial real estate:
Commercial mortgage		7,368		35		14		11		114		174		2		7,544
Construction		1,024		5		—		1		27		33		—		1,057
Total commercial real estate loans		8,392		40		14		12		141		207		2		8,601
Commercial lease financing		4,728		34		11		11		12		68		—		4,796
Total commercial loans	$	36,254	$	109	$	99	$	49	$	295	$	552	$	3	$	36,809
Real estate — residential mortgage	$	2,037	$	15	$	5	$	7	$	96	$	123	$	16	$	2,176
Home equity:
Key Community Bank		9,512		51		28		17		199		295		2		9,809
Other		371		7		3		2		18		30		—		401
Total home equity loans		9,883		58		31		19		217		325		2		10,210
Consumer other — Key Community Bank		1,331		8		4		6		3		21		1		1,353
Credit cards		668		8		4		—		13		25		—		693
Consumer other:
Marine		1,202		18		7		2		25		52		—		1,254
Other		76		1		1		—		1		3		—		79
Total consumer other		1,278		19		8		2		26		55		—		1,333
Total consumer loans	$	15,197	$	108	$	52	$	34	$	355	$	549	$	19	$	15,765
Total loans	$	51,451	$	217	$	151	$	83	$	650	$	1,101	$	22	$	52,574

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.

March 31, 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	$	19,989	$	25	$	16	$	19	$	168	$	228	$	20,217
Commercial real estate:
Commercial mortgage		7,532		7		11		82		175		275		7,807
Construction		1,170		19		7		11		66		103		1,273
Total commercial real estate loans		8,702		26		18		93		241		378		9,080
Commercial lease financing		5,140		126		22		15		22		185		5,325
Total commercial loans	$	33,831	$	177	$	56	$	127	$	431	$	791	$	34,622
Real estate — residential mortgage	$	1,852	$	20	$	8	$	5	$	82	$	115	$	1,967
Home equity:
Key Community Bank		8,941		53		34		16		109		212		9,153
Other		476		9		6		4		12		31		507
Total home equity loans		9,417		62		40		20		121		243		9,660
Consumer other — Key Community Bank		1,189		9		4		9		1		23		1,212
Consumer other:
Marine		1,576		30		11		7		30		78		1,654
Other		106		2		1		1		1		5		111
Total consumer other		1,682		32		12		8		31		83		1,765
Total consumer loans	$	14,140	$	123	$	64	$	42	$	235	$	464	$	14,604
Total loans	$	47,971	$	300	$	120	$	169	$	666	$	1,255	$	49,226

Financing Receivable Credit Quality Indicators

Credit quality indicators for our commercial and consumer loan portfolios, excluding $22 million of PCI loans at March 31, 2013, based on bond rating, regulatory classification and payment activity as of March 31, 2013, and 2012 are as follows:

Commercial Credit Exposure

Credit Risk Profile by Creditworthiness Category ^(a)

March 31, 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	$	222	$	165		—	$	3	$	1	$	3	$	548	$	599	$	771	$	770
A		522		785	$	75		62		1		1		950		1,156		1,548		2,004
BBB — BB		21,120		17,231		6,529		6,007		866		788		3,043		3,193		31,558		27,219
B		672		848		426		568		23		165		165		236		1,286		1,817
CCC — C		875		1,188		512		1,167		166		316		90		141		1,643		2,812
Total	$	23,411	$	20,217	$	7,542	$	7,807	$	1,057	$	1,273	$	4,796	$	5,325	$	36,806	$	34,622

(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)}

March 31, in millions
	Residential — Prime
GRADE	2013		2012
Pass	$	12,029	$	11,399
Substandard		339		228
Total	$	12,368	$	11,627

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

March 31,	Consumer — Key Community Bank				Credit cards				Consumer — Marine				Consumer — Other				Total
in millions	2013		2012		2013		2012		2013		2012		2013		2012		2013		2012
Performing	$	1,349	$	1,211	$	680		—	$	1,229	$	1,624	$	78	$	110	$	3,336	$	2,945
Nonperforming		3		1		13		—		25		30		1		1		42		32
Total	$	1,352	$	1,212	$	693		—	$	1,254	$	1,654	$	79	$	111	$	3,378	$	2,977

(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 March 31,
in millions		2013		2012
Balance at beginning of period — continuing operations	$	888	$	1,004
Charge-offs		(90)		(132)
Recoveries		41		31
Net loans and leases charged off		(49)		(101)
Provision for loan and lease losses from continuing operations		55		42
Foreign currency translation adjustment		(1)		(1)
Balance at end of period — continuing operations	$	893	$	944

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		March 31, 2013
Commercial, financial and agricultural	$	327	$	13		$	(14)	$	12	$	338
Real estate — commercial mortgage		198		3			(13)		5		193
Real estate — construction		41		(13)			(1)		8		35
Commercial lease financing		55		9			(6)		4		62
Total commercial loans		621		12			(34)		29		628
Real estate — residential mortgage		30		10			(6)		—		34
Home equity:
Key Community Bank		105		17			(18)		2		106
Other		25		(3)			(6)		2		18
Total home equity loans		130		14			(24)		4		124
Consumer other — Key Community Bank		38		2			(9)		2		33
Credit cards		26		14			(8)		—		32
Consumer other:
Marine		39		2			(8)		5		38
Other		4		—			(1)		1		4
Total consumer other:		43		2			(9)		6		42
Total consumer loans		267		42			(56)		12		265
Total ALLL — continuing operations		888		54	(a)		(90)		41		893
Discontinued operations		55		6			(16)		4		49
Total ALLL — including discontinued operations	$	943	$	60		$	(106)	$	45	$	942

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

in millions	December 31,  2011		Provision			Charge-offs		Recoveries		March 31,  2012
Commercial, financial and agricultural	$	334	$	(3)		$	(26)	$	11	$	316
Real estate — commercial mortgage		272		12			(23)		2		263
Real estate — construction		63		3			(11)		1		56
Commercial lease financing		78		(10)			(4)		4		68
Total commercial loans		747		2			(64)		18		703
Real estate — residential mortgage		37		4			(6)		1		36
Home equity:
Key Community Bank		103		14			(25)		2		94
Other		29		6			(8)		1		28
Total home equity loans		132		20			(33)		3		122
Consumer other — Key Community Bank		41		5			(10)		1		37
Consumer other:
Marine		46		9			(17)		7		45
Other		1		1			(2)		1		1
Total consumer other:		47		10			(19)		8		46
Total consumer loans		257		39			(68)		13		241
Total ALLL — continuing operations		1,004		41	(a)		(132)		31		944
Discontinued operations		104		5			(23)		4		90
Total ALLL — including discontinued operations	$	1,108	$	46		$	(155)	$	35	$	1,034

(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 March 31, 2013, follows:

	Allowance						Outstanding
March 31, 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	$	8	$	330		—	$	23,412		$	108	$	23,303	$	1
Commercial real estate:
Commercial mortgage		3		190		—		7,544			96		7,446		2
Construction		—		35		—		1,057			48		1,009		—
Total commercial real estate loans		3		225		—		8,601			144		8,455		2
Commercial lease financing		—		62		—		4,796			—		4,796		—
Total commercial loans		11		617		—		36,809			252		36,554		3
Real estate — residential mortgage		1		33		—		2,176			33		2,127		16
Home equity:
Key Community Bank		14		92		—		9,809			90		9,717		2
Other		—		18		—		401			12		389		—
Total home equity loans		14		110		—		10,210			102		10,106		2
Consumer other — Key Community Bank		1		32		—		1,353			4		1,348		1
Credit cards		1		31		—		693			3		690		—
Consumer other:
Marine		5		33		—		1,254			50		1,204		—
Other		1		3		—		79			1		78		—
Total consumer other		6		36		—		1,333			51		1,282		—
Total consumer loans		23		242		—		15,765			193		15,553		19
Total ALLL — continuing operations		34		859		—		52,574			445		52,107		22
Discontinued operations		1		48		—		5,086	(a)		4		5,082		—
Total ALLL — including discontinued operations	$	35	$	907		—	$	57,660		$	449	$	57,189	$	22

(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 March 31, 2012, follows:

	Allowance(a)				Outstanding(a)
	Individually		Collectively					Individually		Collectively
March 31, 2012 in millions	Evaluated for Impairment		Evaluated for Impairment		Loans			Evaluated for Impairment		Evaluated for Impairment
Commercial, financial and agricultural	$	19	$	297	$	20,217		$	125	$	20,092
Commercial real estate:
Commercial mortgage		16		247		7,807			182		7,625
Construction		3		53		1,273			52		1,221
Total commercial real estate loans		19		300		9,080			234		8,846
Commercial lease financing		—		68		5,325			—		5,325
Total commercial loans		38		665		34,622			359		34,263
Real estate — residential mortgage		—		36		1,967			—		1,967
Home equity:
Key Community Bank		—		94		9,153			—		9,153
Other		—		28		507			—		507
Total home equity loans		—		122		9,660			—		9,660
Consumer other — Key Community Bank		—		37		1,212			—		1,212
Consumer other:
Marine		—		45		1,654			—		1,654
Other		—		1		111			—		111
Total consumer other		—		46		1,765			—		1,765
Total consumer loans		—		241		14,604			—		14,604
Total ALLL — continuing operations		38		906		49,226			359		48,867
Discontinued operations		—		90		5,715	(b)		—		5,715
Total ALLL — including discontinued operations	$	38	$	996	$	54,941		$	359	$	54,582

(a) There were no PCI loans at March 31, 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 lending-related commitments are summarized as follows:

	Three months ended March 31,
in millions	2013		2012
Balance at beginning of period	$	29	$	45
Provision (credit) for losses on lending-related commitments		3		—
Balance at end of period	$	32	$	45