KeyBank 2013 Annual Report Download - page 200

Combined discontinued operations. The combined results of the discontinued operations are as follows:
Year ended December 31,
in millions 2013 2012 2011
Net interest income $ 105 $ 119 $ 138
Provision (credit) for loan and lease losses 20 9 113
Net interest income (expense) after provision for loan and lease losses 85 110 25
Noninterest income 76 62 66
Noninterest expense 95 135 147
Income (loss) before income taxes 66 37 (56)
Income taxes 26 14 (21)
Income (loss) from discontinued operations, net of taxes (a) $40$ 23 $ (35)
(a) Includes after-tax charges of $40 million for 2013, $50 million for 2012, and $50 million for 2011, determined by applying a matched
funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.
The combined assets and liabilities of the discontinued operations are as follows:
December 31,
in millions 2013 2012
Cash and due from banks $20$23
Trust loans at fair value 1,960 2,369
Portfolio loans at fair value 147 157
Loans, net of unearned income of ($6) and ($5) 2,390 2,675
Less: Allowance for loan and lease losses 39 55
Net loans 4,458 5,146
Trust accrued income and other assets at fair value 20 26
Accrued income and other assets 74 87
Total assets $ 4,572 $ 5,282
Trust accrued expense and other liabilities at fair value $20$22
Accrued expense and other liabilities —39
Trust securities at fair value 1,834 2,159
Total liabilities $ 1,854 $ 2,220
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,
accommodate customers’ financing needs, 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 “Accrued
income and other assets” on the balance sheet; reverse repurchase agreements are included in “Federal funds
purchased and securities sold under repurchase agreements.”
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