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

Exhibit 99.3

Consolidated Balance Sheets
(dollars in millions)
			9/30/2020		6/30/2020		9/30/2019
Assets
	Loans				$	103,081	$	106,159	$	92,760
	Loans held for sale				1,724		2,007		1,598
	Securities available for sale				26,895		23,600		22,378
	Held-to-maturity securities				8,384		9,075		10,490
	Trading account assets				733		645		963
	Short-term investments				14,148		14,036		3,351
	Other investments				620		655		620
		Total earning assets	155,585		156,177		132,160
	Allowance for loan and lease losses				(1,730)		(1,708)		(893)
	Cash and due from banks				956		1,059		636
	Premises and equipment				765		776		815
	Goodwill				2,664		2,664		2,664
	Other intangible assets				203		218		272
	Corporate-owned life insurance				4,274		4,251		4,216
	Accrued income and other assets				7,084		6,976		5,881
	Discontinued assets				739		779		940
		Total assets	$	170,540	$	171,192	$	146,691
Liabilities
	Deposits in domestic offices:
		NOW and money market deposit accounts	$	80,791	$	78,853	$	65,604
		Savings deposits	5,585		5,371		4,668
		Certificates of deposit ($100,000 or more)	3,345		4,476		7,194
		Other time deposits	3,450		4,011		5,300
		Total interest-bearing deposits	93,171		92,711		82,766
		Noninterest-bearing deposits	43,575		42,802		28,883
		Total deposits	136,746		135,513		111,649
	Federal funds purchased and securities sold under repurchase agreements				213		267		182
	Bank notes and other short-term borrowings				818		1,716		700
	Accrued expense and other liabilities				2,356		2,420		2,574
	Long-term debt				12,685		13,734		14,470
		Total liabilities	152,818		153,650		129,575
Equity
	Preferred stock				1,900		1,900		1,900
	Common shares				1,257		1,257		1,257
	Capital surplus				6,263		6,240		6,287
	Retained earnings				12,375		12,154		12,209
	Treasury stock, at cost				(4,940)		(4,945)		(4,696)
	Accumulated other comprehensive income (loss)				867		936		159
		Key shareholders’ equity	17,722		17,542		17,116
	Noncontrolling interests				—		—		—
		Total equity	17,722		17,542		17,116
Total liabilities and equity							$	170,540	$	171,192	$	146,691
Common shares outstanding (000)							976,205		975,947		988,538

Consolidated Statements of Income
(dollars in millions, except per share amounts)
			Three months ended											Nine months ended
			9/30/2020	6/30/2020		9/30/2019				9/30/2020		9/30/2019
Interest income
	Loans			$	927	$	980	$	1,073			$	2,933	$	3,221
	Loans held for sale			18		21		18				58		46
	Securities available for sale			115		121		136				365		400
	Held-to-maturity securities			53		56		64				171		199
	Trading account assets			3		5		7				16		24
	Short-term investments			1		7		16				14		49
	Other investments			2		—		3				3		11
		Total interest income	1,119	1,190		1,317				3,560		3,950
Interest expense
	Deposits			54		96		227				319		652
	Federal funds purchased and securities sold under repurchase agreements			—		—		—				6		1
	Bank notes and other short-term borrowings			1		5		4				11		13
	Long-term debt			64		71		114				225		354
		Total interest expense	119	172		345				561		1,020
Net interest income						1,000		1,018		972				2,999		2,930
Provision for credit losses						160		482		200				1,001		336
Net interest income after provision for credit losses						840		536		772				1,998		2,594
Noninterest income
	Trust and investment services income			128		123		118				384		355
	Investment banking and debt placement fees			146		156		176				418		449
	Service charges on deposit accounts			77		68		86				229		251
	Operating lease income and other leasing gains			38		60		42				128		123
	Corporate services income			51		52		63				165		171
	Cards and payments income			114		91		69				271		208
	Corporate-owned life insurance income			30		35		32				101		97
	Consumer mortgage income			51		62		16				133		42
	Commercial mortgage servicing fees			18		12		21				48		58
	Other income			28		33		27				(27)		54
		Total noninterest income	681	692		650				1,850		1,808
Noninterest expense
	Personnel			588		572		547				1,675		1,699
	Net occupancy			76		71		72				223		217
	Computer processing			59		56		53				170		163
	Business services and professional fees			49		49		43				142		132
	Equipment			25		25		27				74		75
	Operating lease expense			33		34		33				103		91
	Marketing			22		24		26				67		69
	FDIC assessment			6		8		7				23		23
	Intangible asset amortization			15		18		26				50		70
	OREO expense, net			(1)		6		3				8		10
	Other expense			165		150		102				446		372
		Total noninterest expense	1,037	1,013		939				2,981		2,921
Income (loss) from continuing operations before income taxes						484		215		483				867		1,481
	Income taxes			60		30		70				113		239
Income (loss) from continuing operations						424		185		413				754		1,242
	Income (loss) from discontinued operations, net of taxes			4		2		3				7		6
Net income (loss)						428		187		416				761		1,248
	Less: Net income (loss) attributable to noncontrolling interests			—		—		—				—		—
Net income (loss) attributable to Key						$	428	$	187	$	416			$	761	$	1,248
Income (loss) from continuing operations attributable to Key common shareholders						$	397	$	159	$	383			$	674	$	1,172
Net income (loss) attributable to Key common shareholders						401		161		386				681		1,178
Per common share
Income (loss) from continuing operations attributable to Key common shareholders						$	.41	$	.16	$	.39			$	.7	$	1.17
Income (loss) from discontinued operations, net of taxes						—		—		—				.01		.01
Net income (loss) attributable to Key common shareholders (a)						.41		.17		.39				.7		1.18
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders						$	.41	$	.16	$	.38			$	.69	$	1.16
Income (loss) from discontinued operations, net of taxes						—		—		—				.01		.01
Net income (loss) attributable to Key common shareholders (a)						.41		.17		$	.39			.70		1.17
Cash dividends declared per common share						$	.185	$	.185	$	.185			$	.555	$	.525
Weighted-average common shares outstanding (000)						967,804		967,147		988,319				967,632		998,268
	Effect of common share options and other stock awards			6,184		4,994		10,009				6,648		9,632
Weighted-average common shares and potential common shares outstanding (000) (b)						973,988		972,141		998,328				974,280		1,007,900

(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.