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

Exhibit 99.3

Consolidated Balance Sheets
(dollars in millions)
			3/31/2020			12/31/2019			3/31/2019
Assets
	Loans		$	103,198		$	94,646		$	90,178
	Loans held for sale		2,143			1,334			894
	Securities available for sale		20,807			21,843			20,854
	Held-to-maturity securities		9,638			10,067			11,234
	Trading account assets		795			1,040			979
	Short-term investments		4,073			1,272			2,511
	Other investments		679			605			646
		Total earning assets	141,333			130,807			127,296
	Allowance for loan and lease losses		(1,359		)	(900		)	(883		)
	Cash and due from banks		865			732			611
	Premises and equipment		791			814			849
	Goodwill		2,664			2,664			2,516
	Other intangible assets		236			253			300
	Corporate-owned life insurance		4,243			4,233			4,184
	Accrued income and other assets		6,604			5,494			5,596
	Discontinued assets		820			891			1,046
		Total assets	$	156,197		$	144,988		$	141,515
Liabilities
	Deposits in domestic offices:
		NOW and money market deposit accounts	$	71,005		$	66,714		$	61,380
		Savings deposits	4,753			4,651			4,839
		Certificates of deposit ($100,000 or more)	5,630			6,598			8,396
		Other time deposits	4,623			5,054			5,573
		Total interest-bearing deposits	86,011			83,017			80,188
		Noninterest-bearing deposits	29,293			28,853			27,987
		Total deposits	115,304			111,870			108,175
	Federal funds purchased and securities sold under repurchase agreements		2,444			387			266
	Bank notes and other short-term borrowings		4,606			705			679
	Accrued expense and other liabilities		2,700			2,540			2,301
	Long-term debt		13,732			12,448			14,168
		Total liabilities	138,786			127,950			125,589
Equity
	Preferred stock		1,900			1,900			1,450
	Common shares		1,257			1,257			1,257
	Capital surplus		6,222			6,295			6,259
	Retained earnings		12,174			12,469			11,771
	Treasury stock, at cost		(4,956		)	(4,909		)	(4,283		)
	Accumulated other comprehensive income (loss)		814			26			(530		)
		Key shareholders’ equity	17,411			17,038			15,924
	Noncontrolling interests		—			—			2
		Total equity	17,411			17,038			15,926
Total liabilities and equity			$	156,197		$	144,988		$	141,515
Common shares outstanding (000)			975,319			977,189			1,013,186

Consolidated Statements of Income
(dollars in millions, except per share amounts)
			Three months ended
			3/31/2020			12/31/2019		3/31/2019
Interest income
	Loans		$	1,026		$	1,046	$	1,066
	Loans held for sale		19			17		13
	Securities available for sale		129			137		129
	Held-to-maturity securities		62			63		68
	Trading account assets		8			8		8
	Short-term investments		6			12		16
	Other investments		1			2		4
		Total interest income	1,251			1,285		1,304
Interest expense
	Deposits		169			201		202
	Federal funds purchased and securities sold under repurchase agreements		6			1		1
	Bank notes and other short-term borrowings		5			4		4
	Long-term debt		90			100		120
		Total interest expense	270			306		327
Net interest income			981			979		977
Provision for credit losses			359			109		62
Net interest income after provision for credit losses			622			870		915
Noninterest income
	Trust and investment services income		133			120		115
	Investment banking and debt placement fees		116			181		110
	Service charges on deposit accounts		84			86		82
	Operating lease income and other leasing gains		30			39		37
	Corporate services income		62			65		55
	Cards and payments income		66			67		66
	Corporate-owned life insurance income		36			39		32
	Consumer mortgage income		20			21		11
	Commercial mortgage servicing fees		18			19		18
	Other income		(88		)	14		10
		Total noninterest income	477			651		536
Noninterest expense
	Personnel		515			551		563
	Net occupancy		76			76		72
	Computer processing		55			51		54
	Business services and professional fees		44			54		44
	Equipment		24			25		24
	Operating lease expense		36			32		26
	Marketing		21			27		19
	FDIC assessment		9			8		7
	Intangible asset amortization		17			19		22
	OREO expense, net		3			3		3
	Other expense		131			134		129
		Total noninterest expense	931			980		963
Income (loss) from continuing operations before income taxes			168			541		488
	Income taxes		23			75		82
Income (loss) from continuing operations			145			466		406
	Income (loss) from discontinued operations, net of taxes		1			3		1
Net income (loss)			146			469		407
	Less: Net income (loss) attributable to noncontrolling interests		—			—		—
Net income (loss) attributable to Key			$	146		$	469	$	407
Income (loss) from continuing operations attributable to Key common shareholders			$	118		$	439	$	386
Net income (loss) attributable to Key common shareholders			119			442		387
Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.12		$	.45	$	.38
Income (loss) from discontinued operations, net of taxes			—			—		—
Net income (loss) attributable to Key common shareholders (a)			.12			.45		.38
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.12		$	.45	$	.38
Income (loss) from discontinued operations, net of taxes			—			—		—
Net income (loss) attributable to Key common shareholders (a)			.12			.45		.38
Cash dividends declared per common share			$	.185		$	.185	$	.17
Weighted-average common shares outstanding (000)			967,446			973,450		1,006,717
	Effect of common share options and other stock awards		8,664			10,911		9,787
Weighted-average common shares and potential common shares outstanding (000) (b)			976,110			984,361		1,016,504

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

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