KeyCorp (KEY) 8-K Keycorp Reports Second Quarter 2016

Exhibit 99.3

Consolidated Balance Sheets

(dollars in millions)

	6-30-16			3-31-16			6-30-15
Assets
Loans	$	62,098		$	60,438		$	58,264
Loans held for sale		442			684			835
Securities available for sale		14,552			14,304			14,244
Held-to-maturity securities		4,832			5,003			5,022
Trading account assets		965			765			674
Short-term investments		6,599			5,436			3,222
Other investments		577			643			703
Total earning assets		90,065			87,273			82,964
Allowance for loan and lease losses		(854	)		(826	)		(796	)
Cash and due from banks		496			474			693
Premises and equipment		742			750			788
Operating lease assets		399			362			296
Goodwill		1,060			1,060			1,057
Other intangible assets		50			57			83
Corporate-owned life insurance		3,568			3,557			3,502
Derivative assets		1,234			1,065			536
Accrued income and other assets		2,673			2,849			3,312
Discontinued assets		1,717			1,781			2,169
Total assets	$	101,150		$	98,402		$	94,604
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	40,195		$	38,946		$	36,024
Savings deposits		2,355			2,385			2,370
Certificates of deposit ($100,000 or more)		3,381			3,095			2,032
Other time deposits		3,267			3,259			3,105
Total interest-bearing deposits		49,198			47,685			43,531
Noninterest-bearing deposits		26,127			25,697			26,640
Deposits in foreign office — interest-bearing		—			—			498
Total deposits		75,325			73,382			70,669
Federal funds purchased and securities sold under repurchase agreements		360			374			444
Bank notes and other short-term borrowings		687			615			528
Derivative liabilities		746			790			560
Accrued expense and other liabilities		1,326			1,410			1,537
Long-term debt		11,388			10,760			10,265
Total liabilities		89,832			87,331			84,003
Equity
Preferred stock, Series A		290			290			290
Common shares		1,017			1,017			1,017
Capital surplus		3,835			3,818			3,898
Retained earnings		9,166			9,042			8,614
Treasury stock, at cost		(2,881	)		(2,888	)		(2,884	)
Accumulated other comprehensive income (loss)		(114	)		(213	)		(345	)
Key shareholders’ equity		11,313			11,066			10,590
Noncontrolling interests		5			5			11
Total equity		11,318			11,071			10,601
Total liabilities and equity	$	101,150		$	98,402		$	94,604
Common shares outstanding (000)		842,703			842,290			843,608

Consolidated Statements of Income

(dollars in millions, except per share amounts)

		Three months ended							Six months ended
		6-30-16			3-31-16		6-30-15		6-30-16			6-30-15
Interest income
Loans		$	567		$	562	$	532	$	1,129		$	1,055
Loans held for sale			5			8		12		13			19
Securities available for sale			74			75		72		149			142
Held-to-maturity securities			24			24		24		48			48
Trading account assets			6			7		5		13			10
Short-term investments			6			4		2		10			4
Other investments			2			3		5		5			10
Total interest income			684			683		652		1,367			1,288
Interest expense
Deposits			34			31		26		65			52
Bank notes and other short-term borrowings			3			2		2		5			4
Long-term debt			50			46		40		96			77
Total interest expense			87			79		68		166			133
Net interest income			597			604		584		1,201			1,155
Provision for credit losses			52			89		41		141			76
Net interest income after provision for credit losses			545			515		543		1,060			1,079
Noninterest income
Trust and investment services income			110			109		111		219			220
Investment banking and debt placement fees			98			71		141		169			209
Service charges on deposit accounts			68			65		63		133			124
Operating lease income and other leasing gains			18			17		24		35			43
Corporate services income			53			50		43		103			86
Cards and payments income			52			46		47		98			89
Corporate-owned life insurance income			28			28		30		56			61
Consumer mortgage income			3			2		4		5			7
Mortgage servicing fees			10			12		9		22			22
Net gains (losses) from principal investing			11			—		11		11			40
Other income (a), (b)			22			31		5		53			24
Total noninterest income			473			431		488		904			925
Noninterest expense
Personnel	��		427			404		408		831			797
Net occupancy			59			61		66		120			131
Computer processing			45			43		42		88			80
Business services and professional fees			40			41		42		81			75
Equipment			21			21		22		42			44
Operating lease expense			14			13		12		27			23
Marketing			22			12		15		34			23
FDIC assessment			8			9		8		17			16
Intangible asset amortization			7			8		9		15			18
OREO expense, net			2			1		1		3			3
Other expense			106			90		86		196			170
Total noninterest expense			751			703		711		1,454			1,380
Income (loss) from continuing operations before income taxes			267			243		320		510			624
Income taxes			69			56		84		125			158
Income (loss) from continuing operations			198			187		236		385			466
Income (loss) from discontinued operations, net of taxes			3			1		3		4			8
Net income (loss)			201			188		239		389			474
Less: Net income (loss) attributable to noncontrolling interests			(1	)		—		1		(1	)		3
Net income (loss) attributable to Key		$	202		$	188	$	238	$	390		$	471
Income (loss) from continuing operations attributable to Key common shareholders		$	193		$	182	$	230	$	375		$	452
Net income (loss) attributable to Key common shareholders			196			183		233		379			460
Per common share
Income (loss) from continuing operations attributable to Key common shareholders		$	.23		$	.22	$	.27	$	.45		$	.53
Income (loss) from discontinued operations, net of taxes			—			—		—		—			.01
Net income (loss) attributable to Key common shareholders (b)			.23			.22		.28		.45			.54
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders		$	.23		$	.22	$	.27	$	.44		$	.52
Income (loss) from discontinued operations, net of taxes			—			—		—		—			.01
Net income (loss) attributable to Key common shareholders (b)			.23			.22		.27		.45			.53
Cash dividends declared per common share		$	.085		$	.075	$	.075	$	.16		$	.14
Weighted-average common shares outstanding (000)			831,899			827,381		839,454		829,640			843,992
Effect of common share options and other stock awards			6,597			7,679		6,858		7,138			7,695
Weighted-average common shares and potential common shares outstanding (000) (c)			838,496			835,060		846,312		836,778			851,687

(a) For the three months ended June 30, 2016, March 31, 2016, and June 30, 2015, net securities gains (losses) totaled less than $1 million. For the three months ended June 30, 2016, March 31, 2016, and June 30, 2015, 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.