KeyCorp (KEY) 8-K Keycorp Reports Third Quarter 2008 Results

Exhibit 99.3 (1 of 2)

KeyCorp
Consolidated Balance Sheets
(dollars in millions)

	9-30-08			6-30-08			9-30-07
ASSETS
Loans	$	76,705		$	75,855		$	68,999
Loans held for sale		1,475			1,833			4,791
Securities available for sale		8,391			8,312			7,915
Held-to-maturity securities		28			25			36
Trading account assets		1,449			1,483			1,060
Short-term investments		653			826			528
Other investments		1,556			1,559			1,509
Total earning assets		90,257			89,893			84,838
Allowance for loan losses		(1,554	)		(1,421	)		(955	)
Cash and due from banks		1,937			1,912			2,016
Premises and equipment		801			748			631
Operating lease assets		1,030			1,089			1,135
Goodwill		1,595			1,598			1,202
Other intangible assets		135			146			105
Corporate-owned life insurance		2,940			2,917			2,845
Derivative assets		951			1,693			539
Accrued income and other assets		3,198			2,969			3,781
Total assets	$	101,290		$	101,544		$	96,137
LIABILITIES
Deposits in domestic offices:
NOW and money market deposit accounts	$	25,789		$	27,278		$	24,198
Savings deposits		1,731			1,809			1,544
Certificates of deposit ($100,000 or more)		10,316			8,699			6,672
Other time deposits		13,929			12,541			11,403
Total interest-bearing deposits		51,765			50,327			43,817
Noninterest-bearing deposits		11,122			10,561			14,003
Deposits in foreign office — interest-bearing		1,791			3,508			5,894
Total deposits		64,678			64,396			63,714
Federal funds purchased and securities sold under repurchase agreements		1,799			2,088			5,398
Bank notes and other short-term borrowings		5,352			5,985			2,429
Derivative liabilities		589			637			218
Accrued expense and other liabilities		4,624			4,626			5,009
Long-term debt		15,597			15,106			11,549
Total liabilities		92,639			92,838			88,317
SHAREHOLDERS’ EQUITY
Preferred stock		658			650			—
Common shares		584			577			492
Capital surplus		2,552			2,544			1,617
Retained earnings		7,320			7,461			8,788
Treasury stock, at cost		(2,616	)		(2,675	)		(3,023	)
Accumulated other comprehensive income (loss)		153			149			(54	)
Total shareholders’ equity		8,651			8,706			7,820
Total liabilities and shareholders’ equity	$	101,290		$	101,544		$	96,137
Common shares outstanding (000)		494,765			485,662			388,708

Exhibit 99.3 (2 of 2)

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

	Three months ended									Nine months ended
	9-30-08			6-30-08			9-30-07			9-30-08			9-30-07
Interest income		��
Loans	$	1,066		$	717		$	1,209		$	2,906		$	3,546
Loans held for sale		21			20			91			128			248
Securities available for sale		110			111			106			330			312
Held-to-maturity securities		1			—			—			2			1
Trading account assets		16			10			11			39			26
Short-term investments		6			8			5			23			24
Other investments		12			14			12			38			40
Total interest income		1,232			880			1,434			3,466			4,197
Interest expense
Deposits		347			347			482			1,122			1,362
Federal funds purchased and securities sold under repurchase agreements		10			15			55			53			163
Bank notes and other short-term borrowings		34			27			30			100			59
Long-term debt		142			133			173			421			554
Total interest expense		533			522			740			1,696			2,138
Net interest income		699			358			694			1,770			2,059
Provision for loan losses		407			647			69			1,241			166
Net interest income (loss) after provision for loan losses		292			(289	)		625			529			1,893
Noninterest income
Trust and investment services income		133			138			119			400			359
Service charges on deposit accounts		94			93			88			275			247
Investment banking and capital markets (loss) income		(31	)		80			9			57			105
Operating lease income		69			68			70			206			200
Letter of credit and loan fees		53			51			51			141			134
Corporate-owned life insurance income		28			28			27			84			84
Electronic banking fees		27			27			25			78			74
Net (losses) gains from loan securitizations and sales		(30	)		33			(53	)		(98	)		(11	)
Net securities gains (losses)		1			(1	)		4			3			(41	)
Net (losses) gains from principal investing		(24	)		(14	)		9			(29	)		128
Gain from redemption of Visa Inc. shares		—			—			—			165			—
Gain from sale of McDonald Investments branch network		—			—			—			—			171
Other income		68			52			89			189			291
Total noninterest income		388			555			438			1,471			1,741
Noninterest expense
Personnel		381			404			383			1,194			1,222
Net occupancy		65			62			60			193			182
Computer processing		46			43			49			136			149
Operating lease expense		56			55			58			169			165
Professional fees		35			33			27			91			79
Equipment		23			23			22			70			71
Marketing		27			21			21			62			60
Other expense		129			140			133			360			424
Total noninterest expense		762			781			753			2,275			2,352
(Loss) income from continuing operations before income taxes		(82	)		(515	)		310			(275	)		1,282
Income taxes		(46	)		611			86			669			363
(Loss) income from continuing operations		(36	)		(1,126	)		224			(944	)		919
Loss from discontinued operations, net of taxes		—			—			(14	)		—			(25	)
Net (loss) income	$	(36	)	$	(1,126	)	$	210		$	(944	)	$	894
Net (loss) income applicable to common shares	$	(48	)	$	(1,126	)	$	210		$	(956	)	$	894
Per common share:
(Loss) income from continuing operations	$	(.10	)	$	(2.70	)	$	.58		$	(2.19	)	$	2.34
Net (loss) income		(.10	)		(2.70	)		.54			(2.19	)		2.28
Per common share — assuming dilution:
(Loss) income from continuing operations	$	(.10	)	$	(2.70	)	$	.57		$	(2.19	)	$	2.31
Net (loss) income		(.10	)		(2.70	)		.54			(2.19	)		2.25
Cash dividends declared per common share	$	.1875		$	.375		$	.365		$	.9375		$	1.095
Weighted-average common shares outstanding (000)		491,179			416,629			389,319			435,846			393,048
Weighted-average common shares and potential common shares outstanding (000)		491,179			416,629			393,164			435,846			397,816