KeyBank 2014 Annual Report Download - page 200

The combined assets and liabilities of the discontinued operations are as follows:
December 31,
in millions 2014 2013
Cash and due from banks $19$20
Held-to-maturity securities 1—
Seller note —29
Trust loans at fair value —1,960
Portfolio loans at fair value 191 147
Loans, net of unearned income (a) 2,104 2,390
Less: Allowance for loan and lease losses 29 39
Net loans 2,266 4,458
Trust accrued income and other assets at fair value —20
Accrued income and other assets 38 45
Total assets $ 2,324 $ 4,572
Trust accrued expense and other liabilities at fair value —$20
Accrued expense and other liabilities $3 —
Trust securities at fair value —1,834
Total liabilities $3$ 1,854
(a) At December 31, 2014, and December 31, 2013, unearned income was less than $1 million.
14. Securities Financing Activities
We enter into repurchase and reverse repurchase agreements and securities borrowed transactions (securities
financing agreements) primarily to finance our inventory positions, acquire securities to cover short positions,
and to settle other securities obligations. We account for these securities financing agreements as collateralized
financing transactions. Repurchase and reverse repurchase agreements are recorded on the balance sheet at the
amounts at which the securities will be subsequently sold or repurchased. Securities borrowed transactions are
recorded on the balance sheet at the amounts of cash collateral advanced. While our securities financing
agreements incorporate a right of set off, the assets and liabilities are reported on a gross basis. Repurchase
agreements and securities borrowed transactions are included in “Short-term investments” on the balance sheet;
reverse repurchase agreements are included in “Federal funds purchased and securities sold under repurchase
agreements.”
During the third quarter of 2014, our broker-dealer subsidiary, KeyBanc Capital Markets, Inc. (“KBCM”),
moved from a self-clearing organization to using a third-party organization for clearing purposes. In connection
with this change, KBCM became an introducing broker-dealer, whereby it no longer needs to fund its business
operations by entering into repurchase, reverse repurchase, or securities borrowed agreements. KBCM had no
securities financing agreements outstanding at December 31, 2014.
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