KeyCorp (KEY) 8-K Keycorp Reports First Quarter 2009 Results

Exhibit 99.3 (1 of 2)

KeyCorp
Consolidated Balance Sheets
(dollars in millions)

	3-31-09			12-31-08			3-31-08
Assets
Loans	$	73,703		$	76,504		$	76,444
Loans held for sale		1,124			1,027			1,674
Securities available for sale		8,530			8,437			8,419
Held-to-maturity securities		25			25			29
Trading account assets		1,279			1,280			1,015
Short-term investments		2,917			5,221			577
Other investments		1,464			1,526			1,561
Total earning assets		89,042			94,020			89,719
Allowance for loan losses		(2,186	)		(1,803	)		(1,298	)
Cash and due from banks		637			1,257			1,730
Premises and equipment		847			840			712
Operating lease assets		889			990			1,070
Goodwill		916			1,138			1,599
Other intangible assets		112			128			164
Corporate-owned life insurance		2,994			2,970			2,894
Derivative assets		1,707			1,896			1,508
Accrued income and other assets		2,876			3,095			3,394
Total assets	$	97,834		$	104,531		$	101,492
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	23,599		$	24,191		$	26,527
Savings deposits		1,795			1,712			1,826
Certificates of deposit ($100,000 or more)		13,250			11,991			8,330
Other time deposits		14,791			14,763			12,933
Total interest-bearing deposits		53,435			52,657			49,616
Noninterest-bearing deposits		11,760			11,485			10,896
Deposits in foreign office — interest-bearing		801			1,118			4,190
Total deposits		65,996			65,260			64,702
Federal funds purchased and securities sold under repurchase agreements		1,565			1,557			3,503
Bank notes and other short-term borrowings		2,285			8,477			5,464
Derivative liabilities		932			1,038			465
Accrued expense and other liabilities		1,904			2,523			4,252
Long-term debt		14,978			14,995			14,337
Total liabilities		87,660			93,850			92,723
Equity
Preferred stock, Series A		658			658			—
Preferred stock, Series B		2,418			2,414			—
Common shares		584			584			492
Common stock warrant		87			87			—
Capital surplus		2,464			2,553			1,659
Retained earnings		6,160			6,727			8,737
Treasury stock, at cost		(2,500	)		(2,608	)		(2,689	)
Accumulated other comprehensive income		97			65			393
Key shareholders’ equity		9,968			10,480			8,592
Noncontrolling interest		206			201			177
Total equity		10,174			10,681			8,769
Total liabilities and equity	$	97,834		$	104,531		$	101,492
							��
Common shares outstanding (000)		498,573			495,002			400,071

Exhibit 99.3 (2 of 2)

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

	Three months ended
	3-31-09			12-31-08			3-31-08
Interest income
Loans	$	883		$	996		$	1,123
Loans held for sale		12			18			87
Securities available for sale		108			110			109
Held-to-maturity securities		1			1			1
Trading account assets		13			17			13
Short-term investments		3			8			9
Other investments		12			13			12
Total interest income		1,032			1,163			1,354
Interest expense
Deposits		300			346			428
Federal funds purchased and securities sold under repurchase agreements		1			4			28
Bank notes and other short-term borrowings		6			31			39
Long-term debt		111			143			146
Total interest expense		418			524			641
Net interest income		614			639			713
Provision for loan losses		875			594			187
Net interest (loss) income after provision for loan losses		(261	)		45			526
Noninterest income
Trust and investment services income		117			138			129
Service charges on deposit accounts		82			90			88
Operating lease income		61			64			69
Letter of credit and loan fees		38			42			37
Corporate-owned life insurance income		27			33			28
Electronic banking fees		24			25			24
Insurance income		18			15			15
Investment banking and capital markets income		18			6			8
Net securities (losses) gains		(14	)		(5	)		3
Net (losses) gains from principal investing		(72	)		(37	)		11
Net gains (losses) from loan securitizations and sales		8			3			(101	)
Gain from sale/redemption of Visa Inc. shares		105			—			165
Other income		80			21			54
Total noninterest income		492			395			530
Noninterest expense
Personnel		362			411			409
Net occupancy		66			68			66
Operating lease expense		50			55			58
Computer processing		47			51			47
Professional fees		35			51			23
FDIC assessment		30			3			2
Equipment		22			22			24
Marketing		14			25			14
Intangible assets impairment		223			465			—
Other expense		124			151			90
Total noninterest expense		973			1,302			733
(Loss) income before income taxes		(742	)		(862	)		323
Income taxes		(244	)		(335	)		104
Net (loss) income		(498	)		(527	)		219
Less: Net (loss) income attributable to noncontrolling interest		(10	)		(3	)		1
Net (loss) income attributable to Key	$	(488	)	$	(524	)	$	218
Net (loss) income attributable to Key common shareholders	$	(536	)	$	(554	)	$	218
Per common share:
Net (loss) income attributable to Key	$	(1.09	)	$	(1.13	)	$	.55
Net (loss) income attributable to Key — assuming dilution		(1.09	)		(1.13	)		.54
Cash dividends declared		.0625			.0625			—
Weighted-average common shares outstanding (000)		492,813			492,311			399,121
Weighted-average common shares and potential common shares outstanding (000)		492,813			492,311			399,769