KeyCorp (KEY) 8-K Keycorp Reports Fourth Quarter 2013

Exhibit 99.3

Consolidated Balance Sheets

(dollars in millions)

	12-31-13			9-30-13			12-31-12
Assets
Loans	$	54,457		$	53,597		$	52,822
Loans held for sale		611			699			599
Securities available for sale		12,346			12,606			12,094
Held-to-maturity securities		4,756			4,835			3,931
Trading account assets		738			806			605
Short-term investments		5,590			3,535			3,940
Other investments		969			1,007			1,064
Total earning assets		79,467			77,085			75,055
Allowance for loan and lease losses		(848	)		(868	)		(888	)
Cash and due from banks		617			748			584
Premises and equipment		885			890			965
Operating lease assets		305			293			288
Goodwill		979			979			979
Other intangible assets		127			137			171
Corporate-owned life insurance		3,408			3,384			3,333
Derivative assets		407			475			693
Accrued income and other assets		3,015			2,747			2,774
Discontinued assets		4,572			4,838			5,282
Total assets	$	92,934		$	90,708		$	89,236
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	33,952		$	33,132		$	32,380
Savings deposits		2,472			2,489			2,433
Certificates of deposit ($100,000 or more)		2,631			2,698			2,879
Other time deposits		3,648			3,833			4,575
Total interest-bearing deposits		42,703			42,152			42,267
Noninterest-bearing deposits		26,001			25,778			23,319
Deposits in foreign office — interest-bearing		558			605			407
Total deposits		69,262			68,535			65,993
Federal funds purchased and securities sold under repurchase agreements		1,534			1,455			1,609
Bank notes and other short-term borrowings		343			466			287
Derivative liabilities		414			450			584
Accrued expense and other liabilities		1,557			1,375			1,387
Long-term debt		7,650			6,154			6,847
Discontinued liabilities		1,854			2,037			2,220
Total liabilities		82,614			80,472			78,927
Equity
Preferred stock, Series A		291			291			291
Common shares		1,017			1,017			1,017
Capital surplus		4,022			4,029			4,126
Retained earnings		7,606			7,431			6,913
Treasury stock, at cost		(2,281	)		(2,193	)		(1,952	)
Accumulated other comprehensive income (loss)		(352	)		(369	)		(124	)
Key shareholders’ equity		10,303			10,206			10,271
Noncontrolling interests		17			30			38
Total equity		10,320			10,236			10,309
Total liabilities and equity	$	92,934		$	90,708		$	89,236
Common shares outstanding (000)		890,724			897,821			925,769

Consolidated Statements of Income

(dollars in millions, except per share amounts)

	Three months ended									Twelve months ended
	12-31-13			9-30-13			12-31-12			12-31-13		12-31-12
Interest income
Loans	$	532		$	532		$	563		$	2,151	$	2,155
Loans held for sale		6			5			5			20		20
Securities available for sale		75			76			85			311		399
Held-to-maturity securities		22			22			19			82		69
Trading account assets		6			5			3			21		18
Short-term investments		2			1			2			6		6
Other investments		6			6			11			29		38
Total interest income		649			647			688			2,620		2,705
Interest expense
Deposits		34			37			49			158		257
Federal funds purchased and securities sold under repurchase agreements		—			1			1			2		4
Bank notes and other short-term borrowings		3			2			2			8		7
Long-term debt		29			29			35			127		173
Total interest expense		66			69			87			295		441
Net interest income		583			578			601			2,325		2,264
Provision (credit) for loan and lease losses		19			28			57			130		229
Net interest income (expense) after provision for loan and lease losses		564			550			544			2,195		2,035
Noninterest income
Trust and investment services income		98			100			95			393		375
Investment banking and debt placement fees		84			86			110			333		327
Service charges on deposit accounts		68			73			75			281		287
Operating lease income and other leasing gains		23			43			19			108		195
Corporate services income		40			44			41			172		168
Cards and payments income		40			43			38			162		135
Corporate-owned life insurance income		33			26			36			120		122
Consumer mortgage income		3			3			11			19		40
Mortgage servicing fees		22			15			7			58		24
Net gains (losses) from principal investing		20			17			2			52		72
Other income (a)		22			9			5			68		111
Total noninterest income		453			459			439			1,766		1,856
Noninterest expense
Personnel		398			414			422			1,609		1,570
Net occupancy		73			66			69			275		260
Computer processing		40			38			38			156		164
Business services and professional fees		42			37			54			151		190
Equipment		26			25			27			104		107
Operating lease expense		10			14			12			47		57
Marketing		18			16			20			51		68
FDIC assessment		7			7			8			30		31
Intangible asset amortization on credit cards		7			8			8			30		14
Other intangible asset amortization		3			4			4			14		9
Provision (credit) for losses on lending-related commitments		(3	)		3			(14	)		8		(16	)
OREO expense, net		2			1			1			7		15
Other expense		89			83			85			338		349
Total noninterest expense		712			716			734			2,820		2,818
Income (loss) from continuing operations before income taxes		305			293			249			1,141		1,073
Income taxes		70			59			53			271		231
Income (loss) from continuing operations		235			234			196			870		842
Income (loss) from discontinued operations, net of taxes		(5	)		37			7			40		23
Net income (loss)		230			271			203			910		865
Less: Net income (loss) attributable to noncontrolling interests		—			(1	)		—			—		7
Net income (loss) attributable to Key	$	230		$	272		$	203		$	910	$	858
Income (loss) from continuing operations attributable to Key common shareholders	$	229		$	229		$	190		$	847	$	813
Net income (loss) attributable to Key common shareholders		224			266			197			887		836
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.25		$	.21		$	.93	$	.87
Income (loss) from discontinued operations, net of taxes		(.01	)		.04			.01			.04		.02
Net income (loss) attributable to Key common shareholders (b)		.25			.29			.21			.98		.89
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.25		$	.20		$	.93	$	.86
Income (loss) from discontinued operations, net of taxes		(.01	)		.04			.01			.04		.02
Net income (loss) attributable to Key common shareholders (b)		.25			.29			.21			.97		.89
Cash dividends declared per common share	$	.055		$	.055		$	.05		$	.215	$	.18
Weighted-average common shares outstanding (000)		890,516			901,904			925,725			906,524		938,941
Weighted-average common shares and potential common shares outstanding (000) (c)		897,712			928,854			930,382			912,571		943,259

(a) For the three months ended December 31, 2013, September 30, 2013, and December 31, 2012, Key did not have any impairment losses related to securities.

(b) Earnings per share may not foot due to rounding.

(c) Assumes conversion of stock options and/or Preferred Series A shares, as applicable.