KeyCorp (KEY) 8-K Keycorp Reports Third Quarter 2014

Exhibit 99.3

Consolidated Balance Sheets

(dollars in millions)

	9-30-14			6-30-14			9-30-13
Assets
Loans	$	56,155		$	55,600		$	53,597
Loans held for sale		784			435			699
Securities available for sale		12,245			12,224			12,606
Held-to-maturity securities		4,997			5,233			4,835
Trading account assets		965			890			806
Short-term investments		2,342			3,176			3,535
Other investments		822			899			1,007
Total earning assets		78,310			78,457			77,085
Allowance for loan and lease losses		(804	)		(814	)		(868	)
Cash and due from banks		651			604			748
Premises and equipment		832			844			890
Operating lease assets		304			306			293
Goodwill		1,051			979			979
Other intangible assets		126			108			137
Corporate-owned life insurance		3,456			3,438			3,384
Derivative assets		413			549			475
Accrued income and other assets		3,010			3,090			2,747
Discontinued assets		2,421			4,237			4,838
Total assets	$	89,770		$	91,798		$	90,708
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	33,941		$	33,637		$	33,132
Savings deposits		2,390			2,450			2,489
Certificates of deposit ($100,000 or more)		2,533			2,743			2,698
Other time deposits		3,338			3,505			3,833
Total interest-bearing deposits		42,202			42,335			42,152
Noninterest-bearing deposits		25,697			24,781			25,778
Deposits in foreign office — interest-bearing		557			683			605
Total deposits		68,456			67,799			68,535
Federal funds purchased and securities sold under repurchase agreements		657			1,213			1,455
Bank notes and other short-term borrowings		996			521			466
Derivative liabilities		384			451			450
Accrued expense and other liabilities		1,537			1,400			1,375
Long-term debt		7,172			8,213			6,154
Discontinued liabilities		42			1,680			2,037
Total liabilities		79,244			81,277			80,472
Equity
Preferred stock, Series A		291			291			291
Common shares		1,017			1,017			1,017
Capital surplus		3,984			3,987			4,029
Retained earnings		8,105			7,950			7,431
Treasury stock, at cost		(2,563	)		(2,452	)		(2,193	)
Accumulated other comprehensive income (loss)		(325	)		(289	)		(369	)
Key shareholders’ equity		10,509			10,504			10,206
Noncontrolling interests		17			17			30
Total equity		10,526			10,521			10,236
Total liabilities and equity	$	89,770		$	91,798		$	90,708
Common shares outstanding (000)		868,477			876,823			897,821

Consolidated Statements of Income

(dollars in millions, except per share amounts)

	Three months ended									Nine months ended
	9-30-14			6-30-14			9-30-13			9-30-14			9-30-13
Interest income
Loans	$	531		$	526		$	532		$	1,576		$	1,619
Loans held for sale		4			5			5			13			14
Securities available for sale		67			71			76			210			236
Held-to-maturity securities		25			23			22			70			60
Trading account assets		6			7			5			19			15
Short-term investments		2			1			1			4			4
Other investments		4			6			6			16			23
Total interest income		639			639			647			1,908			1,971
Interest expense
Deposits		28			31			37			91			124
Federal funds purchased and securities sold under repurchase agreements		1			—			1			2			2
Bank notes and other short-term borrowings		2			2			2			6			5
Long-term debt		33			33			29			98			98
Total interest expense		64			66			69			197			229
Net interest income		575			573			578			1,711			1,742
Provision (credit) for loan and lease losses		21			10			28			37			111
Net interest income (expense) after provision for loan and lease losses		554			563			550			1,674			1,631
Noninterest income
Trust and investment services income		99			94			100			291			295
Investment banking and debt placement fees		88			99			86			271			249
Service charges on deposit accounts		68			66			73			197			213
Operating lease income and other leasing gains		17			35			44			81			91
Corporate services income		42			41			44			125			132
Cards and payments income		42			43			43			123			122
Corporate-owned life insurance income		26			28			26			80			87
Consumer mortgage income		3			2			3			7			16
Mortgage servicing fees		9			11			15			35			36
Net gains (losses) from principal investing		9			27			17			60			32
Other income (a)		14			9			8			37			40
Total noninterest income		417			455			459			1,307			1,313
Noninterest expense
Personnel		405			389			414			1,182			1,211
Net occupancy		66			68			66			198			202
Computer processing		39			41			38			118			116
Business services and professional fees		36			41			37			118			109
Equipment		25			24			25			73			78
Operating lease expense		11			10			14			31			37
Marketing		15			13			16			33			33
FDIC assessment		9			6			7			21			23
Intangible asset amortization		10			9			12			29			34
Provision (credit) for losses on lending-related commitments		(2	)		2			3			(2	)		11
OREO expense, net		1			1			1			3			5
Other expense		89			85			83			251			249
Total noninterest expense		704			689			716			2,055			2,108
Income (loss) from continuing operations before income taxes		267			329			293			926			836
Income taxes		64			76			59			232			201
Income (loss) from continuing operations		203			253			234			694			635
Income (loss) from discontinued operations, net of taxes		7			(28	)		37			(17	)		45
Net income (loss)		210			225			271			677			680
Less: Net income (loss) attributable to noncontrolling interests		—			6			(1	)		6			—
Net income (loss) attributable to Key	$	210		$	219		$	272		$	671		$	680
Income (loss) from continuing operations attributable to Key common shareholders	$	197		$	242		$	229		$	671		$	618
Net income (loss) attributable to Key common shareholders		204			214			266			654			663
Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.23		$	.28		$	.25		$	.77		$	.68
Income (loss) from discontinued operations, net of taxes		.01			(.03	)		.04			(.02	)		.05
Net income (loss) attributable to Key common shareholders (b)		.24			.24			.29			.75			.73
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.23		$	.27		$	.25		$	.76		$	.67
Income (loss) from discontinued operations, net of taxes		.01			(.03	)		.04			(.02	)		.05
Net income (loss) attributable to Key common shareholders (b)		.23			.24			.29			.74			.72
Cash dividends declared per common share	$	.065		$	.065		$	.055		$	.185		$	.16
Weighted-average common shares outstanding (000)		867,350			875,298			901,904			875,728			911,918
Weighted-average common shares and potential common shares outstanding (000) (c)		874,122			902,137			908,253			882,451			917,579

(a) For each of the three months ended September 30, 2014, June 30, 2014, and September 30, 2013, net securities gains (losses) totaled less than $1 million. For the three months ended September 30, 2014, June 30, 2014, and September 30, 2013, Key did not have any impairment losses related to securities.

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

(c) Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.