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

Exhibit 99.3 (1 of 2)

KeyCorp
Consolidated Balance Sheets
(dollars in millions)

	12-31-08			9-30-08			12-31-07
Assets
Loans	$	76,504		$	76,705		$	70,823
Loans held for sale		1,027			1,475			4,736
Securities available for sale		8,437			8,391			7,860
Held-to-maturity securities		25			28			28
Trading account assets		1,280			1,449			1,056
Short-term investments		5,221			653			516
Other investments		1,526			1,556			1,538
Total earning assets		94,020			90,257			86,557
Allowance for loan losses		(1,803	)		(1,554	)		(1,200	)
Cash and due from banks		1,257			1,937			1,814
Premises and equipment		840			801			681
Operating lease assets		990			1,030			1,128
Goodwill		1,138			1,595			1,252
Other intangible assets		128			135			123
Corporate-owned life insurance		2,970			2,940			2,872
Derivative assets		1,896			951			879
Accrued income and other assets		3,095			3,198			4,122
Total assets	$	104,531		$	101,290		$	98,228
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	24,191		$	25,789		$	27,635
Savings deposits		1,712			1,731			1,513
Certificates of deposit ($100,000 or more)		11,991			10,316			6,982
Other time deposits		14,763			13,929			11,615
Total interest-bearing deposits		52,657			51,765			47,745
Noninterest-bearing deposits		11,485			11,122			11,028
Deposits in foreign office — interest-bearing		1,118			1,791			4,326
Total deposits		65,260			64,678			63,099
Federal funds purchased and securities sold under repurchase agreements		1,557			1,799			3,927
Bank notes and other short-term borrowings		8,477			5,352			5,861
Derivative liabilities		1,038			589			252
Accrued expense and other liabilities		2,724			4,624			5,386
Long-term debt		14,995			15,597			11,957
Total liabilities		94,051			92,639			90,482
Shareholders’ equity
Preferred stock, Series A		658			658			—
Preferred stock, Series B		2,414			—			—
Common shares		584			584			492
Common stock warrants		87			—			—
Capital surplus		2,553			2,552			1,623
Retained earnings		6,727			7,320			8,522
Treasury stock, at cost		(2,608	)		(2,616	)		(3,021	)
Accumulated other comprehensive income		65			153			130
Total shareholders’ equity		10,480			8,651			7,746
Total liabilities and shareholders’ equity	$	104,531		$	101,290		$	98,228
Common shares outstanding (000)		495,002			494,765			388,793

Exhibit 99.3 (2 of 2)

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

	Three months ended									Twelve months ended
	12-31-08			9-30-08			12-31-07			12-31-08			12-31-07
Interest income
Loans	$	996		$	1,066		$	1,205		$	3,902		$	4,751
Loans held for sale		18			21			89			146			337
Securities available for sale		110			110			115			440			427
Held-to-maturity securities		1			1			1			3			2
Trading account assets		17			16			12			56			38
Short-term investments		8			6			13			31			37
Other investments		13			12			12			51			52
Total interest income		1,163			1,232			1,447			4,629			5,644
Interest expense
Deposits		346			347			483			1,468			1,845
Federal funds purchased and securities sold under repurchase agreements		4			10			45			57			208
Bank notes and other short-term borrowings		31			34			45			131			104
Long-term debt		143			142			164			564			718
Total interest expense		524			533			737			2,220			2,875
Net interest income		639			699			710			2,409			2,769
Provision for loan losses		594			407			363			1,835			529
Net interest income after provision for loan losses		45			292			347			574			2,240
Noninterest income
Trust and investment services income		138			133			131			538			490
Service charges on deposit accounts		90			94			90			365			337
Operating lease income		64			69			72			270			272
Letter of credit and loan fees		42			53			58			183			192
Corporate-owned life insurance income		33			28			37			117			121
Electronic banking fees		25			27			25			103			99
Insurance income		15			15			10			65			55
Investment banking and capital markets income (loss)		6			(31	)		12			63			117
Net securities (losses) gains		(5	)		1			6			(2	)		(35	)
Net (losses) gains from principal investing		(33	)		(24	)		6			(62	)		134
Net gains (losses) from loan securitizations and sales		3			(30	)		(6	)		(95	)		(17	)
Gain from redemption of Visa Inc. shares		—			—			—			165			—
Gain from sale of McDonald Investments branch network		—			—			—			—			171
Other income		21			53			47			160			293
Total noninterest income		399			388			488			1,870			2,229
Noninterest expense
Personnel		411			381			399			1,605			1,621
Net occupancy		68			65			64			261			246
Operating lease expense		55			56			59			224			224
Computer processing		51			46			52			187			201
Professional fees		51			35			38			142			117
Equipment		22			23			25			92			96
Marketing		25			27			16			87			76
Goodwill impairment		465			4			5			469			5
Other expense		155			125			238			511			662
Total noninterest expense		1,303			762			896			3,578			3,248
(Loss) income from continuing operations before income taxes		(859	)		(82	)		(61	)		(1,134	)		1,221
Income taxes		(335	)		(46	)		(83	)		334			280
(Loss) income from continuing operations		(524	)		(36	)		22			(1,468	)		941
Income (loss) from discontinued operations, net of taxes		—			—			3			—			(22	)
Net (loss) income	$	(524	)	$	(36	)	$	25		$	(1,468	)	$	919
Net (loss) income applicable to common shares	$	(554	)	$	(48	)	$	25		$	(1,510	)	$	919
Per common share:
(Loss) income from continuing operations	$	(1.13	)	$	(.10	)	$	.06		$	(3.36	)	$	2.40
Net (loss) income		(1.13	)		(.10	)		.06			(3.36	)		2.35
Per common share — assuming dilution:
(Loss) income from continuing operations	$	(1.13	)	$	(.10	)	$	.06		$	(3.36	)	$	2.38
Net (loss) income		(1.13	)		(.10	)		.06			(3.36	)		2.32
Cash dividends declared per common share	$	.0625		$	.1875		$	.74		$	.625		$	1.835
Weighted-average common shares outstanding (000)		492,311			491,179			388,940			450,039			392,013
Weighted-average common shares and potential common shares outstanding (000)		492,311			491,179			389,911			450,039			395,823