KeyCorp (KEY) 8-K Keycorp Reports First Quarter 2010 Results

Exhibit 99.3 (1 of 2)

Consolidated Balance Sheets
(dollars in millions)

	3-31-10			12-31-09			3-31-09
Assets
Loans	$	55,913		$	58,770		$	70,003
Loans held for sale		556			443			671
Securities available for sale		16,553			16,641			8,363
Held-to-maturity securities		22			24			25
Trading account assets		1,034			1,209			1,279
Short-term investments		4,345			1,743			2,917
Other investments		1,525			1,488			1,464
Total earning assets		79,948			80,318			84,722
Allowance for loan losses		(2,425	)		(2,534	)		(2,016	)
Cash and due from banks		619			471			624
Premises and equipment		872			880			847
Operating lease assets		652			716			889
Goodwill		917			917			917
Other intangible assets		46			50			110
Corporate-owned life insurance		3,087			3,071			2,994
Derivative assets		1,063			1,094			1,707
Accrued income and other assets		4,150			4,096			2,615
Discontinued assets		6,374			4,208			4,425
Total assets	$	95,303		$	93,287		$	97,834
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	25,068		$	24,341		$	23,599
Savings deposits		1,873			1,807			1,795
Certificates of deposit ($100,000 or more)		10,188			10,954			13,250
Other time deposits		12,010			13,286			14,791
Total interest-bearing deposits		49,139			50,388			53,435
Noninterest-bearing deposits		15,364			14,415			11,641
Deposits in foreign office — interest-bearing		646			768			801
Total deposits		65,149			65,571			65,877
Federal funds purchased and securities sold under repurchase agreements		1,927			1,742			1,565
Bank notes and other short-term borrowings		446			340			2,285
Derivative liabilities		1,103			1,012			927
Accrued expense and other liabilities		2,089			2,007			1,891
Long-term debt		11,177			11,558			14,978
Discontinued liabilities		2,490			124			137
Total liabilities		84,381			82,354			87,660
Equity
Preferred stock, Series A		291			291			658
Preferred stock, Series B		2,434			2,430			2,418
Common shares		946			946			584
Common stock warrant		87			87			87
Capital surplus		3,724			3,734			2,464
Retained earnings		5,098			5,158			6,160
Treasury stock, at cost		(1,958	)		(1,980	)		(2,500	)
Accumulated other comprehensive income (loss)		19			(3	)		97
Key shareholders’ equity		10,641			10,663			9,968
Noncontrolling interests		281			270			206
Total equity		10,922			10,933			10,174
Total liabilities and equity	$	95,303		$	93,287		$	97,834
Common shares outstanding (000)		879,052			878,535			498,573

Exhibit 99.3 (2 of 2)

Consolidated Statements of Income
(dollars in millions, except per share amounts)

	Three months ended
	3-31-10			12-31-09			3-31-09
Interest income
Loans	$	710		$	749		$	840
Loans held for sale		4			6			8
Securities available for sale		150			150			100
Held-to-maturity securities		1			—			1
Trading account assets		11			12			13
Short-term investments		2			3			3
Other investments		14			13			12
Total interest income		892			933			977
Interest expense
Deposits		212			246			300
Federal funds purchased and securities sold under repurchase agreements		1			1			1
Bank notes and other short-term borrowings		3			3			6
Long-term debt		51			53			81
Total interest expense		267			303			388
Net interest income		625			630			589
Provision for loan losses		413			756			847
Net interest income (expense) after provision for loan losses		212			(126	)		(258	)
Noninterest income
Trust and investment services income		114			117			110
Service charges on deposit accounts		76			82			82
Operating lease income		47			52			61
Letter of credit and loan fees		40			52			38
Corporate-owned life insurance income		28			36			27
Net securities gains (losses)		3	(a)		1	(a)		(14	)
Electronic banking fees		27			27			24
Gains on leased equipment		8			15			26
Insurance income		18			16			18
Net gains (losses) from loan sales		4			(5	)		7
Net gains (losses) from principal investing		37			80			(72	)
Investment banking and capital markets income (loss)		9			(47	)		17
Gain from sale/redemption of Visa Inc. shares		—			—			105
Gain (loss) related to exchange of common shares for capital securities		—			—			—
Other income		39			43			49
Total noninterest income		450			469			478
Noninterest expense
Personnel		362			400			359
Net occupancy		66			67			66
Operating lease expense		39			50			50
Computer processing		47			49			47
Professional fees		38			63			34
FDIC assessment		37			37			30
OREO expense, net		32			25			6
Equipment		24			25			22
Marketing		13			22			14
Provision (credit) for losses on lending-related commitments		(2	)		27			—
Intangible assets impairment		—			—			196
Other expense		129			106			103
Total noninterest expense		785			871			927
Income (loss) from continuing operations before income taxes		(123	)		(528	)		(707	)
Income taxes		(82	)		(347	)		(238	)
Income (loss) from continuing operations		(41	)		(181	)		(469	)
Income (loss) from discontinued operations, net of taxes		2			(7	)		(29	)
Net income (loss)		(39	)		(188	)		(498	)
Less: Net income (loss) attributable to noncontrolling interests		16			36			(10	)
Net income (loss) attributable to Key	$	(55	)	$	(224	)	$	(488	)
Income (loss) from continuing operations attributable to Key common shareholders	$	(98	)	$	(258	)	$	(507	)
Net income (loss) attributable to Key common shareholders		(96	)		(265	)		(536	)
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	(.11	)	$	(.30	)	$	(1.03	)
Income (loss) from discontinued operations, net of taxes		—			(.01	)		(.06	)
Net income (loss) attributable to Key common shareholders		(.11	)		(.30	)		(1.09	)
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	(.11	)	$	(.30	)	$	(1.03	)
Income (loss) from discontinued operations, net of taxes		—			(.01	)		(.06	)
Net income (loss) attributable to Key common shareholders		(.11	)		(.30	)		(1.09	)
Cash dividends declared per common share	$	.01		$	.01		$	.0625
Weighted-average common shares outstanding (000)		874,386			873,268			492,813
Weighted-average common shares and potential common shares outstanding (000)		874,386			873,268			492,813

(a) For the three months ended March 31, 2010, and December 31, 2009, Key did not have impairment losses related to securities.