EX-99.3 4 a1q20erex993.htm EXHIBIT 99.3 Exhibit
Exhibit 99.3


Consolidated Balance Sheets
(dollars in millions)
 
 
 
 
 
 
 
 
 
3/31/2020

12/31/2019

3/31/2019

Assets
 
 
 
 
Loans
$
103,198

$
94,646

$
90,178

 
Loans held for sale
2,143

1,334

894

 
Securities available for sale
20,807

21,843

20,854

 
Held-to-maturity securities
9,638

10,067

11,234

 
Trading account assets
795

1,040

979

 
Short-term investments
4,073

1,272

2,511

 
Other investments
679

605

646

 
 
Total earning assets
141,333

130,807

127,296

 
Allowance for loan and lease losses
(1,359
)
(900
)
(883
)
 
Cash and due from banks
865

732

611

 
Premises and equipment
791

814

849

 
Goodwill
2,664

2,664

2,516

 
Other intangible assets
236

253

300

 
Corporate-owned life insurance
4,243

4,233

4,184

 
Accrued income and other assets
6,604

5,494

5,596

 
Discontinued assets
820

891

1,046

 
 
Total assets
$
156,197

$
144,988

$
141,515

 
 
 
 
 
 
Liabilities
 
 
 
 
Deposits in domestic offices:
 
 
 
 
 
NOW and money market deposit accounts
$
71,005

$
66,714

$
61,380

 
 
Savings deposits
4,753

4,651

4,839

 
 
Certificates of deposit ($100,000 or more)
5,630

6,598

8,396

 
 
Other time deposits
4,623

5,054

5,573

 
 
Total interest-bearing deposits
86,011

83,017

80,188

 
 
Noninterest-bearing deposits
29,293

28,853

27,987

 
 
Total deposits
115,304

111,870

108,175

 
Federal funds purchased and securities sold under repurchase agreements 
2,444

387

266

 
Bank notes and other short-term borrowings
4,606

705

679

 
Accrued expense and other liabilities
2,700

2,540

2,301

 
Long-term debt
13,732

12,448

14,168

 
 
Total liabilities
138,786

127,950

125,589

 
 
 
 
 
 
Equity
 
 
 
 
Preferred stock
1,900

1,900

1,450

 
Common shares
1,257

1,257

1,257

 
Capital surplus
6,222

6,295

6,259

 
Retained earnings
12,174

12,469

11,771

 
Treasury stock, at cost
(4,956
)
(4,909
)
(4,283
)
 
Accumulated other comprehensive income (loss)
814

26

(530
)
 
 
Key shareholders’ equity
17,411

17,038

15,924

 
Noncontrolling interests


2

 
 
Total equity
17,411

17,038

15,926

Total liabilities and equity
$
156,197

$
144,988

$
141,515

 
 
 
 
 
 
Common shares outstanding (000)
975,319

977,189

1,013,186





Consolidated Statements of Income
(dollars in millions, except per share amounts)
 
 
 
Three months ended
 
 
 
3/31/2020
12/31/2019
3/31/2019
Interest income
 
 
 
 
Loans
$
1,026

$
1,046

$
1,066

 
Loans held for sale
19

17

13

 
Securities available for sale
129

137

129

 
Held-to-maturity securities
62

63

68

 
Trading account assets
8

8

8

 
Short-term investments
6

12

16

 
Other investments
1

2

4

 
 
Total interest income
1,251

1,285

1,304

Interest expense
 
 
 
 
Deposits
169

201

202

 
Federal funds purchased and securities sold under repurchase agreements
6

1

1

 
Bank notes and other short-term borrowings
5

4

4

 
Long-term debt
90

100

120

 
 
Total interest expense
270

306

327

Net interest income
981

979

977

Provision for credit losses
359

109

62

Net interest income after provision for credit losses
622

870

915

Noninterest income
 
 
 
 
Trust and investment services income
133

120

115

 
Investment banking and debt placement fees
116

181

110

 
Service charges on deposit accounts
84

86

82

 
Operating lease income and other leasing gains
30

39

37

 
Corporate services income
62

65

55

 
Cards and payments income
66

67

66

 
Corporate-owned life insurance income
36

39

32

 
Consumer mortgage income
20

21

11

 
Commercial mortgage servicing fees
18

19

18

 
Other income
(88
)
14

10

 
 
Total noninterest income
477

651

536

Noninterest expense
 
 
 
 
Personnel
515

551

563

 
Net occupancy
76

76

72

 
Computer processing
55

51

54

 
Business services and professional fees
44

54

44

 
Equipment
24

25

24

 
Operating lease expense
36

32

26

 
Marketing
21

27

19

 
FDIC assessment
9

8

7

 
Intangible asset amortization
17

19

22

 
OREO expense, net
3

3

3

 
Other expense
131

134

129

 
 
Total noninterest expense
931

980

963

Income (loss) from continuing operations before income taxes
168

541

488

 
Income taxes
23

75

82

Income (loss) from continuing operations
145

466

406

 
Income (loss) from discontinued operations, net of taxes
1

3

1

Net income (loss)
146

469

407

 
Less: Net income (loss) attributable to noncontrolling interests



Net income (loss) attributable to Key
$
146

$
469

$
407

 
 
 
 
 
 
Income (loss) from continuing operations attributable to Key common shareholders
$
118

$
439

$
386

Net income (loss) attributable to Key common shareholders
119

442

387

Per common share
 
 
 
Income (loss) from continuing operations attributable to Key common shareholders
$
.12

$
.45

$
.38

Income (loss) from discontinued operations, net of taxes



Net income (loss) attributable to Key common shareholders (a)
.12

.45

.38

Per common share — assuming dilution
 
 
 
Income (loss) from continuing operations attributable to Key common shareholders
$
.12

$
.45

$
.38

Income (loss) from discontinued operations, net of taxes



Net income (loss) attributable to Key common shareholders (a)
.12

.45

.38

 
 
 
 
 
 
Cash dividends declared per common share
$
.185

$
.185

$
.17

 
 
 
 
 
 
Weighted-average common shares outstanding (000)
967,446

973,450

1,006,717

 
Effect of common share options and other stock awards
8,664

10,911

9,787

Weighted-average common shares and potential common shares outstanding (000) (b)
976,110

984,361

1,016,504

 
 
 
 
 
 
(a)
Earnings per share may not foot due to rounding.
(b)
Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.