KeyCorp (KEY) 8-K Results of Operations and Financial Condition

Exhibit 99.3

Consolidated Balance Sheets
(dollars in millions)
			3/31/2019			12/31/2018			3/31/2018
Assets
	Loans		$	90,178		$	89,552		$	88,089
	Loans held for sale		894			1,227			1,667
	Securities available for sale		20,854			19,428			17,888
	Held-to-maturity securities		11,234			11,519			12,189
	Trading account assets		979			849			769
	Short-term investments		2,511			2,562			1,644
	Other investments		646			666			715
		Total earning assets	127,296			125,803			122,961
	Allowance for loan and lease losses		(883		)	(883		)	(881		)
	Cash and due from banks		611			678			643
	Premises and equipment		849			882			916
	Goodwill		2,516			2,516			2,538
	Other intangible assets		300			316			387
	Corporate-owned life insurance		4,184			4,171			4,142
	Accrued income and other assets		5,596			5,030			5,054
	Discontinued assets		1,046			1,100			1,289
		Total assets	$	141,515		$	139,613		$	137,049
Liabilities
	Deposits in domestic offices:
		NOW and money market deposit accounts	$	61,380		$	59,918		$	54,606
		Savings deposits	4,839			4,854			6,321
		Certificates of deposit ($100,000 or more)	8,396			7,913			7,295
		Other time deposits	5,573			5,332			4,928
		Total interest-bearing deposits	80,188			78,017			73,150
		Noninterest-bearing deposits	27,987			29,292			31,601
		Total deposits	108,175			107,309			104,751
	Federal funds purchased and securities sold under repurchase agreements		266			319			616
	Bank notes and other short-term borrowings		679			544			1,133
	Accrued expense and other liabilities		2,301			2,113			1,854
	Long-term debt		14,168			13,732			13,749
		Total liabilities	125,589			124,017			122,103
Equity
	Preferred stock		1,450			1,450			1,025
	Common shares		1,257			1,257			1,257
	Capital surplus		6,259			6,331			6,289
	Retained earnings		11,771			11,556			10,624
	Treasury stock, at cost		(4,283		)	(4,181		)	(3,260		)
	Accumulated other comprehensive income (loss)		(530		)	(818		)	(991		)
		Key shareholders’ equity	15,924			15,595			14,944
	Noncontrolling interests		2			1			2
		Total equity	15,926			15,596			14,946
Total liabilities and equity			$	141,515		$	139,613		$	137,049
Common shares outstanding (000)			1,013,186			1,019,503			1,064,939

Consolidated Statements of Income
(dollars in millions, except per share amounts)
			Three months ended
			3/31/2019		12/31/2018		3/31/2018
Interest income
	Loans		$	1,066	$	1,058	$	940
	Loans held for sale		13		26		12
	Securities available for sale		129		115		95
	Held-to-maturity securities		68		71		69
	Trading account assets		8		8		7
	Short-term investments		16		15		8
	Other investments		4		4		6
		Total interest income	1,304		1,297		1,137
Interest expense
	Deposits		202		174		91
	Federal funds purchased and securities sold under repurchase agreements		1		1		4
	Bank notes and other short-term borrowings		4		4		6
	Long-term debt		120		118		92
		Total interest expense	327		297		193
Net interest income			977		1,000		944
Provision for credit losses			62		59		61
Net interest income after provision for credit losses			915		941		883
Noninterest income
	Trust and investment services income		115		121		133
	Investment banking and debt placement fees		110		186		143
	Service charges on deposit accounts		82		84		89
	Operating lease income and other leasing gains		37		28		32
	Corporate services income		55		58		62
	Cards and payments income		66		68		62
	Corporate-owned life insurance income		32		39		32
	Consumer mortgage income		8		7		7
	Mortgage servicing fees		21		21		20
	Other income (a)		10		33		21
		Total noninterest income	536		645		601
Noninterest expense
	Personnel		563		576		594
	Net occupancy		72		75		78
	Computer processing		54		55		52
	Business services and professional fees		44		49		41
	Equipment		24		26		26
	Operating lease expense		26		32		27
	Marketing		19		25		25
	FDIC assessment		7		9		21
	Intangible asset amortization		22		22		29
	OREO expense, net		3		1		2
	Other expense		129		142		111
		Total noninterest expense	963		1,012		1,006
Income (loss) from continuing operations before income taxes			488		574		478
	Income taxes		82		92		62
Income (loss) from continuing operations			406		482		416
	Income (loss) from discontinued operations, net of taxes		1		2		2
Net income (loss)			407		484		418
	Less: Net income (loss) attributable to noncontrolling interests		—		—		—
Net income (loss) attributable to Key			$	407	$	484	$	418
Income (loss) from continuing operations attributable to Key common shareholders			$	386	$	459	$	402
Net income (loss) attributable to Key common shareholders			387		461		404
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.38	$	.45	$	.38
Income (loss) from discontinued operations, net of taxes			—		—		—
Net income (loss) attributable to Key common shareholders (b)			.38		.45		.38
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.38	$	.45	$	.38
Income (loss) from discontinued operations, net of taxes			—		—		—
Net income (loss) attributable to Key common shareholders (b)			.38		.45		.38
Cash dividends declared per common share			$	.17	$	.17	$	.105
Weighted-average common shares outstanding (000)			1,006,717		1,018,614		1,056,037
	Effect of common share options and other stock awards		9,787		11,803		15,749
Weighted-average common shares and potential common shares outstanding (000) (c)			1,016,504		1,030,417		1,071,786

(a) For the three months ended March 31, 2019, December 31, 2018, and March 31, 2018, net securities gains (losses) totaled less than $1 million. For the three months ended March 31, 2019, December 31, 2018, and March 31, 2018, Key did not have any impairment losses related to securities.

(b) Earnings per share may not foot due to rounding.

(c) Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.