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

Exhibit 99.3

Consolidated Balance Sheets
(dollars in millions)
			9/30/2019			6/30/2019			9/30/2018
Assets
	Loans		$	92,760		$	91,937		$	89,268
	Loans held for sale		1,598			1,790			1,618
	Securities available for sale		22,378			21,528			18,341
	Held-to-maturity securities		10,490			10,878			11,869
	Trading account assets		963			1,005			958
	Short-term investments		3,351			2,443			2,272
	Other investments		620			632			681
		Total earning assets	132,160			130,213			125,007
	Allowance for loan and lease losses		(893		)	(890		)	(887		)
	Cash and due from banks		636			607			319
	Premises and equipment		815			829			891
	Goodwill		2,664			2,664			2,516
	Other intangible assets		272			298			338
	Corporate-owned life insurance		4,216			4,201			4,156
	Accrued income and other assets		5,881			5,633			5,308
	Discontinued assets		940			990			1,157
		Total assets	$	146,691		$	144,545		$	138,805
Liabilities
	Deposits in domestic offices:
		NOW and money market deposit accounts	$	65,604		$	63,619		$	57,219
		Savings deposits	4,668			4,747			4,948
		Certificates of deposit ($100,000 or more)	7,194			8,084			8,453
		Other time deposits	5,300			5,524			5,130
		Total interest-bearing deposits	82,766			81,974			75,750
		Noninterest-bearing deposits	28,883			27,972			30,030
		Total deposits	111,649			109,946			105,780
	Federal funds purchased and securities sold under repurchase agreements		182			161			1,285
	Bank notes and other short-term borrowings		700			720			637
	Accrued expense and other liabilities		2,574			2,435			2,044
	Long-term debt		14,470			14,312			13,849
		Total liabilities	129,575			127,574			123,595
Equity
	Preferred stock		1,900			1,900			1,450
	Common shares		1,257			1,257			1,257
	Capital surplus		6,287			6,266			6,315
	Retained earnings		12,209			12,005			11,262
	Treasury stock, at cost		(4,696		)	(4,457		)	(3,910		)
	Accumulated other comprehensive income (loss)		159			(2		)	(1,166		)
		Key shareholders’ equity	17,116			16,969			15,208
	Noncontrolling interests		—			2			2
		Total equity	17,116			16,971			15,210
Total liabilities and equity			$	146,691		$	144,545		$	138,805
Common shares outstanding (000)			988,538			1,003,114			1,034,287

Consolidated Statements of Income
(dollars in millions, except per share amounts)
			Three months ended						Nine months ended
			9/30/2019		6/30/2019		9/30/2018		9/30/2019		9/30/2018
Interest income
	Loans		$	1,073	$	1,082	$	1,025	$	3,221	$	2,965
	Loans held for sale		18		15		12		46		40
	Securities available for sale		136		135		102		400		294
	Held-to-maturity securities		64		67		72		199		213
	Trading account assets		7		9		7		24		21
	Short-term investments		16		17		15		49		31
	Other investments		3		4		6		11		17
		Total interest income	1,317		1,329		1,239		3,950		3,581
Interest expense
	Deposits		227		223		140		652		343
	Federal funds purchased and securities sold under repurchase agreements		—		—		1		1		10
	Bank notes and other short-term borrowings		4		5		4		13		17
	Long-term debt		114		120		108		354		302
		Total interest expense	345		348		253		1,020		672
Net interest income			972		981		986		2,930		2,909
Provision for credit losses			200		74		62		336		187
Net interest income after provision for credit losses			772		907		924		2,594		2,722
Noninterest income
	Trust and investment services income		118		122		117		355		378
	Investment banking and debt placement fees		176		163		166		449		464
	Service charges on deposit accounts		86		83		85		251		265
	Operating lease income and other leasing gains		42		44		35		123		61
	Corporate services income		63		53		52		171		175
	Cards and payments income		69		73		69		208		202
	Corporate-owned life insurance income		32		33		34		97		98
	Consumer mortgage income		14		10		9		32		23
	Mortgage servicing fees		23		24		19		68		61
	Other income (a)		27		17		23		54		143
		Total noninterest income	650		622		609		1,808		1,870
Noninterest expense
	Personnel		547		589		553		1,699		1,733
	Net occupancy		72		73		76		217		233
	Computer processing		53		56		52		163		155
	Business services and professional fees		43		45		43		132		135
	Equipment		27		24		27		75		79
	Operating lease expense		33		32		31		91		88
	Marketing		26		24		26		69		77
	FDIC assessment		7		9		21		23		63
	Intangible asset amortization		26		22		23		70		77
	OREO expense, net		3		4		3		10		5
	Other expense		102		141		109		372		318
		Total noninterest expense	939		1,019		964		2,921		2,963
Income (loss) from continuing operations before income taxes			483		510		569		1,481		1,629
	Income taxes		70		87		87		239		252
Income (loss) from continuing operations			413		423		482		1,242		1,377
	Income (loss) from discontinued operations, net of taxes		3		2		—		6		5
Net income (loss)			416		425		482		1,248		1,382
	Less: Net income (loss) attributable to noncontrolling interests		—		—		—		—		—
Net income (loss) attributable to Key			$	416	$	425	$	482	$	1,248	$	1,382
Income (loss) from continuing operations attributable to Key common shareholders			$	383	$	403	$	468	$	1,172	$	1,334
Net income (loss) attributable to Key common shareholders			386		405		468		1,178		1,339
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.39	$	.40	$	.45	$	1.17	$	1.27
Income (loss) from discontinued operations, net of taxes			—		—		—		.01		.01
Net income (loss) attributable to Key common shareholders (b)			.39		.40		.45		1.18		1.28
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.38	$	.40	$	.45	$	1.16	$	1.26
Income (loss) from discontinued operations, net of taxes			—		—		—		.01		.01
Net income (loss) attributable to Key common shareholders (b)			.39		.40		.45		1.17		1.26
Cash dividends declared per common share			$	.185	$	.17	$	.17	$	.525	$	.395
Weighted-average common shares outstanding (000)			988,319		999,163		1,036,479		998,268		1,048,397
	Effect of common share options and other stock awards		10,009		8,801		13,497		9,632		14,419
Weighted-average common shares and potential common shares outstanding (000) (c)			998,328		1,007,964		1,049,976		1,007,900		1,062,816

(a) For the three and nine months ended September 30, 2019, net securities gains (losses) totaled $15 million. For the three months ended June 30, 2019, and September 30, 2018, and the nine months ended September 30, 2018, net securities gains (losses) totaled less than $1 million. For the three months ended September 30, 2019, June 30, 2019, and September 30, 2018, and the nine months ended September 30, 2019 and September 30, 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.