4. Loans and Loans Held for Sale

Our loans by category are summarized as follows:


December 31,
in millions	2014		2013
Commercial, financial and agricultural^(a)	$	27,982	$	24,963
Commercial real estate:
Commercial mortgage		8,047		7,720
Construction		1,100		1,093
Total commercial real estate loans		9,147		8,813
Commercial lease financing ^(b)		4,252		4,551
Total commercial loans		41,381		38,327
Residential — Prime Loans:
Real estate — residential mortgage		2,225		2,187
Home equity:
Key Community Bank		10,366		10,340
Other		267		334
Total home equity loans		10,633		10,674
Total residential — prime loans		12,858		12,861
Consumer other — Key Community Bank		1,560		1,449
Credit cards		754		722
Consumer other:
Marine		779		1,028
Other		49		70
Total consumer other		828		1,098
Total consumer loans		16,000		16,130
Total loans ^{(c) (d)}	$	57,381	$	54,457

(a)	Loan balances include $88 million and $94 million of commercial credit card balances at December 31, 2014, and December 31, 2013, respectively.

(b)

Commercial lease financing includes receivables of $302 million and $58 million held as collateral for a secured borrowing at December 31, 2014, and December 31, 2013, respectively. Principal reductions are based on the cash payments received from these related receivables. We expect to record additional commercial lease financing receivables held as collateral for a secured borrowing through the first quarter of 2015. Additional information pertaining to this secured borrowing is included in Note 18 (“Long-Term Debt”).

(c)	At December 31, 2014, total loans include purchased loans of $138 million, of which $13 million were PCI loans. At December 31, 2013, total loans include purchased loans of $166 million, of which $16 million were PCI loans.

(d)	Total loans exclude loans in the amount of $2.3 billion at December 31, 2014, and $4.5 billion at December 31, 2013, related to the discontinued operations of the education lending business.

We use interest rate swaps, which modify the repricing characteristics of certain loans, to manage interest rate risk. For more information about such swaps, see Note 8 (“Derivatives and Hedging Activities”).

Our loans held for sale by category are summarized as follows:


December 31, in millions	2014		2013
Commercial, financial and agricultural	$	63	$	278
Real estate — commercial mortgage		638		307
Commercial lease financing		15		9
Real estate — residential mortgage		18		17
Total loans held for sale	$	734	$	611

Our summary of changes in loans held for sale follows:


Year ended December 31,
in millions	2014		2013
Balance at beginning of the period	$	611	$	599
New originations		5,681		5,452
Transfers from (to) held to maturity, net		(3)		52
Loan sales		(5,289)		(5,480)
Loan draws (payments), net		(266)		(12)
Balance at end of period	$	734	$	611

Commercial lease financing receivables primarily are direct financing leases, but also include leveraged leases. The composition of the net investment in direct financing leases is as follows:


December 31,
in millions	2014		2013
Direct financing lease receivables	$	3,009	$	3,176
Unearned income		(205)		(219)
Unguaranteed residual value		220		231
Deferred fees and costs		18		21
Net investment in direct financing leases	$	3,042	$	3,209

At December 31, 2014, minimum future lease payments to be received are as follows: 2015 — $1 billion; 2016 — $767 million; 2017 — $474 million; 2018 — $276 million; 2019 — $156 million; and all subsequent years — $169 million. The allowance related to lease financing receivables is $56 million at December 31, 2014.