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

Exhibit 99.3

Consolidated Balance Sheets
(dollars in millions)
			12/31/2019			9/30/2019			12/31/2018
Assets
	Loans		$	94,646		$	92,760		$	89,552
	Loans held for sale		1,334			1,598			1,227
	Securities available for sale		21,843			22,378			19,428
	Held-to-maturity securities		10,067			10,490			11,519
	Trading account assets		1,040			963			849
	Short-term investments		1,272			3,351			2,562
	Other investments		605			620			666
		Total earning assets	130,807			132,160			125,803
	Allowance for loan and lease losses		(900		)	(893		)	(883		)
	Cash and due from banks		732			636			678
	Premises and equipment		814			815			882
	Goodwill		2,664			2,664			2,516
	Other intangible assets		253			272			316
	Corporate-owned life insurance		4,233			4,216			4,171
	Accrued income and other assets		5,494			5,881			5,030
	Discontinued assets		891			940			1,100
		Total assets	$	144,988		$	146,691		$	139,613
Liabilities
	Deposits in domestic offices:
		NOW and money market deposit accounts	$	66,714		$	65,604		$	59,918
		Savings deposits	4,651			4,668			4,854
		Certificates of deposit ($100,000 or more)	6,598			7,194			7,913
		Other time deposits	5,054			5,300			5,332
		Total interest-bearing deposits	83,017			82,766			78,017
		Noninterest-bearing deposits	28,853			28,883			29,292
		Total deposits	111,870			111,649			107,309
	Federal funds purchased and securities sold under repurchase agreements		387			182			319
	Bank notes and other short-term borrowings		705			700			544
	Accrued expense and other liabilities		2,540			2,574			2,113
	Long-term debt		12,448			14,470			13,732
		Total liabilities	127,950			129,575			124,017
Equity
	Preferred stock		1,900			1,900			1,450
	Common shares		1,257			1,257			1,257
	Capital surplus		6,295			6,287			6,331
	Retained earnings		12,469			12,209			11,556
	Treasury stock, at cost		(4,909		)	(4,696		)	(4,181		)
	Accumulated other comprehensive income (loss)		26			159			(818		)
		Key shareholders’ equity	17,038			17,116			15,595
	Noncontrolling interests		—			—			1
		Total equity	17,038			17,116			15,596
Total liabilities and equity			$	144,988		$	146,691		$	139,613
Common shares outstanding (000)			977,189			988,538			1,019,503

Consolidated Statements of Income
(dollars in millions, except per share amounts)
			Three months ended						Twelve months ended
			12/31/2019		9/30/2019		12/31/2018		12/31/2019		12/31/2018
Interest income
	Loans		$	1,046	$	1,073	$	1,058	$	4,267	$	4,023
	Loans held for sale		17		18		26		63		66
	Securities available for sale		137		136		115		537		409
	Held-to-maturity securities		63		64		71		262		284
	Trading account assets		8		7		8		32		29
	Short-term investments		12		16		15		61		46
	Other investments		2		3		4		13		21
		Total interest income	1,285		1,317		1,297		5,235		4,878
Interest expense
	Deposits		201		227		174		853		517
	Federal funds purchased and securities sold under repurchase agreements		1		—		1		2		11
	Bank notes and other short-term borrowings		4		4		4		17		21
	Long-term debt		100		114		118		454		420
		Total interest expense	306		345		297		1,326		969
Net interest income			979		972		1,000		3,909		3,909
Provision for credit losses			109		200		59		445		246
Net interest income after provision for credit losses			870		772		941		3,464		3,663
Noninterest income
	Trust and investment services income		120		118		121		475		499
	Investment banking and debt placement fees		181		176		186		630		650
	Service charges on deposit accounts		86		86		84		337		349
	Operating lease income and other leasing gains		39		42		28		162		89
	Corporate services income		65		63		58		236		233
	Cards and payments income		67		69		68		275		270
	Corporate-owned life insurance income		39		32		39		136		137
	Consumer mortgage income		14		14		7		46		30
	Mortgage servicing fees		26		23		21		94		82
	Other income (a)		14		27		33		68		176
		Total noninterest income	651		650		645		2,459		2,515
Noninterest expense
	Personnel		551		547		576		2,250		2,309
	Net occupancy		76		72		75		293		308
	Computer processing		51		53		55		214		210
	Business services and professional fees		54		43		49		186		184
	Equipment		25		27		26		100		105
	Operating lease expense		32		33		32		123		120
	Marketing		27		26		25		96		102
	FDIC assessment		8		7		9		31		72
	Intangible asset amortization		19		26		22		89		99
	OREO expense, net		3		3		1		13		6
	Other expense		134		102		142		506		460
		Total noninterest expense	980		939		1,012		3,901		3,975
Income (loss) from continuing operations before income taxes			541		483		574		2,022		2,203
	Income taxes		75		70		92		314		344
Income (loss) from continuing operations			466		413		482		1,708		1,859
	Income (loss) from discontinued operations, net of taxes		3		3		2		9		7
Net income (loss)			469		416		484		1,717		1,866
	Less: Net income (loss) attributable to noncontrolling interests		—		—		—		—		—
Net income (loss) attributable to Key			$	469	$	416	$	484	$	1,717	$	1,866
Income (loss) from continuing operations attributable to Key common shareholders			$	439	$	383	$	459	$	1,611	$	1,793
Net income (loss) attributable to Key common shareholders			442		386		461		1,620		1,800
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.45	$	.39	$	.45	$	1.62	$	1.72
Income (loss) from discontinued operations, net of taxes			—		—		—		.01		.01
Net income (loss) attributable to Key common shareholders (b)			.45		.39		.45		1.63		1.73
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.45	$	.38	$	.45	$	1.61	$	1.70
Income (loss) from discontinued operations, net of taxes			—		—		—		.01		.01
Net income (loss) attributable to Key common shareholders (b)			.45		.39		.45		1.62		1.71
Cash dividends declared per common share			$	.185	$	.185	$	.17	$	.71	$	.565
Weighted-average common shares outstanding (000)			973,450		988,319		1,018,614		992,091		1,040,890
	Effect of common share options and other stock awards		10,911		10,009		11,803		10,163		13,792
Weighted-average common shares and potential common shares outstanding (000) (c)			984,361		998,328		1,030,417		1,002,254		1,054,682

(a) For the three and twelve months ended December 31, 2019, net securities gains (losses) totaled $5 million and $20 million, respectively. For the three months ended September 30, 2019, net securities gains (losses) totaled $15 million. For the three and twelve months ended December 31, 2018, net securities gains (losses) totaled less than $1 million. For the three months ended December 31, 2019, September 30, 2019, and December 31, 2018, and the twelve months ended December 31, 2019 and December 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.