Exhibit 99.3
Consolidated Balance Sheets | |||||||||||
(dollars in millions) | |||||||||||
6/30/2019 | 3/31/2019 | 6/30/2018 | |||||||||
Assets | |||||||||||
Loans | $ | 91,937 | $ | 90,178 | $ | 88,222 | |||||
Loans held for sale | 1,790 | 894 | 1,418 | ||||||||
Securities available for sale | 21,528 | 20,854 | 17,367 | ||||||||
Held-to-maturity securities | 10,878 | 11,234 | 12,277 | ||||||||
Trading account assets | 1,005 | 979 | 833 | ||||||||
Short-term investments | 2,443 | 2,511 | 2,646 | ||||||||
Other investments | 632 | 646 | 709 | ||||||||
Total earning assets | 130,213 | 127,296 | 123,472 | ||||||||
Allowance for loan and lease losses | (890 | ) | (883 | ) | (887 | ) | |||||
Cash and due from banks | 607 | 611 | 784 | ||||||||
Premises and equipment | 829 | 849 | 892 | ||||||||
Goodwill | 2,664 | 2,516 | 2,516 | ||||||||
Other intangible assets | 298 | 300 | 361 | ||||||||
Corporate-owned life insurance | 4,201 | 4,184 | 4,147 | ||||||||
Accrued income and other assets | 5,633 | 5,596 | 5,285 | ||||||||
Discontinued assets | 990 | 1,046 | 1,222 | ||||||||
Total assets | $ | 144,545 | $ | 141,515 | $ | 137,792 | |||||
Liabilities | |||||||||||
Deposits in domestic offices: | |||||||||||
NOW and money market deposit accounts | $ | 63,619 | $ | 61,380 | $ | 55,059 | |||||
Savings deposits | 4,747 | 4,839 | 6,199 | ||||||||
Certificates of deposit ($100,000 or more) | 8,084 | 8,396 | 7,547 | ||||||||
Other time deposits | 5,524 | 5,573 | 4,943 | ||||||||
Total interest-bearing deposits | 81,974 | 80,188 | 73,748 | ||||||||
Noninterest-bearing deposits | 27,972 | 27,987 | 30,800 | ||||||||
Total deposits | 109,946 | 108,175 | 104,548 | ||||||||
Federal funds purchased and securities sold under repurchase agreements | 161 | 266 | 1,667 | ||||||||
Bank notes and other short-term borrowings | 720 | 679 | 639 | ||||||||
Accrued expense and other liabilities | 2,435 | 2,301 | 1,983 | ||||||||
Long-term debt | 14,312 | 14,168 | 13,853 | ||||||||
Total liabilities | 127,574 | 125,589 | 122,690 | ||||||||
Equity | |||||||||||
Preferred stock | 1,900 | 1,450 | 1,025 | ||||||||
Common shares | 1,257 | 1,257 | 1,257 | ||||||||
Capital surplus | 6,266 | 6,259 | 6,315 | ||||||||
Retained earnings | 12,005 | 11,771 | 10,970 | ||||||||
Treasury stock, at cost | (4,457 | ) | (4,283 | ) | (3,382 | ) | |||||
Accumulated other comprehensive income (loss) | (2 | ) | (530 | ) | (1,085 | ) | |||||
Key shareholders’ equity | 16,969 | 15,924 | 15,100 | ||||||||
Noncontrolling interests | 2 | 2 | 2 | ||||||||
Total equity | 16,971 | 15,926 | 15,102 | ||||||||
Total liabilities and equity | $ | 144,545 | $ | 141,515 | $ | 137,792 | |||||
Common shares outstanding (000) | 1,003,114 | 1,013,186 | 1,058,944 |
Consolidated Statements of Income | ||||||||||||||||||
(dollars in millions, except per share amounts) | ||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||
6/30/2019 | 3/31/2019 | 6/30/2018 | 6/30/2019 | 6/30/2018 | ||||||||||||||
Interest income | ||||||||||||||||||
Loans | $ | 1,082 | $ | 1,066 | $ | 1,000 | $ | 2,148 | $ | 1,940 | ||||||||
Loans held for sale | 15 | 13 | 16 | 28 | 28 | |||||||||||||
Securities available for sale | 135 | 129 | 97 | 264 | 192 | |||||||||||||
Held-to-maturity securities | 67 | 68 | 72 | 135 | 141 | |||||||||||||
Trading account assets | 9 | 8 | 7 | 17 | 14 | |||||||||||||
Short-term investments | 17 | 16 | 8 | 33 | 16 | |||||||||||||
Other investments | 4 | 4 | 5 | 8 | 11 | |||||||||||||
Total interest income | 1,329 | 1,304 | 1,205 | 2,633 | 2,342 | |||||||||||||
Interest expense | ||||||||||||||||||
Deposits | 223 | 202 | 112 | 425 | 203 | |||||||||||||
Federal funds purchased and securities sold under repurchase agreements | — | 1 | 5 | 1 | 9 | |||||||||||||
Bank notes and other short-term borrowings | 5 | 4 | 7 | 9 | 13 | |||||||||||||
Long-term debt | 120 | 120 | 102 | 240 | 194 | |||||||||||||
Total interest expense | 348 | 327 | 226 | 675 | 419 | |||||||||||||
Net interest income | 981 | 977 | 979 | 1,958 | 1,923 | |||||||||||||
Provision for credit losses | 74 | 62 | 64 | 136 | 125 | |||||||||||||
Net interest income after provision for credit losses | 907 | 915 | 915 | 1,822 | 1,798 | |||||||||||||
Noninterest income | ||||||||||||||||||
Trust and investment services income | 122 | 115 | 128 | 237 | 261 | |||||||||||||
Investment banking and debt placement fees | 163 | 110 | 155 | 273 | 298 | |||||||||||||
Service charges on deposit accounts | 83 | 82 | 91 | 165 | 180 | |||||||||||||
Operating lease income and other leasing gains | 44 | 37 | (6 | ) | 81 | 26 | ||||||||||||
Corporate services income | 53 | 55 | 61 | 108 | 123 | |||||||||||||
Cards and payments income | 73 | 66 | 71 | 139 | 133 | |||||||||||||
Corporate-owned life insurance income | 33 | 32 | 32 | 65 | 64 | |||||||||||||
Consumer mortgage income | 10 | 8 | 7 | 18 | 14 | |||||||||||||
Mortgage servicing fees | 24 | 21 | 22 | 45 | 42 | |||||||||||||
Other income (a) | 17 | 10 | 99 | 27 | 120 | |||||||||||||
Total noninterest income | 622 | 536 | 660 | 1,158 | 1,261 | |||||||||||||
Noninterest expense | ||||||||||||||||||
Personnel | 589 | 563 | 586 | 1,152 | 1,180 | |||||||||||||
Net occupancy | 73 | 72 | 79 | 145 | 157 | |||||||||||||
Computer processing | 56 | 54 | 51 | 110 | 103 | |||||||||||||
Business services and professional fees | 45 | 44 | 51 | 89 | 92 | |||||||||||||
Equipment | 24 | 24 | 26 | 48 | 52 | |||||||||||||
Operating lease expense | 32 | 26 | 30 | 58 | 57 | |||||||||||||
Marketing | 24 | 19 | 26 | 43 | 51 | |||||||||||||
FDIC assessment | 9 | 7 | 21 | 16 | 42 | |||||||||||||
Intangible asset amortization | 22 | 22 | 25 | 44 | 54 | |||||||||||||
OREO expense, net | 4 | 3 | — | 7 | 2 | |||||||||||||
Other expense | 141 | 129 | 98 | 270 | 209 | |||||||||||||
Total noninterest expense | 1,019 | 963 | 993 | 1,982 | 1,999 | |||||||||||||
Income (loss) from continuing operations before income taxes | 510 | 488 | 582 | 998 | 1,060 | |||||||||||||
Income taxes | 87 | 82 | 103 | 169 | 165 | |||||||||||||
Income (loss) from continuing operations | 423 | 406 | 479 | 829 | 895 | |||||||||||||
Income (loss) from discontinued operations, net of taxes | 2 | 1 | 3 | 3 | 5 | |||||||||||||
Net income (loss) | 425 | 407 | 482 | 832 | 900 | |||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||
Net income (loss) attributable to Key | $ | 425 | $ | 407 | $ | 482 | $ | 832 | $ | 900 | ||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | 403 | $ | 386 | $ | 464 | $ | 789 | $ | 866 | ||||||||
Net income (loss) attributable to Key common shareholders | 405 | 387 | 467 | 792 | 871 | |||||||||||||
Per common share | ||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .40 | $ | .38 | $ | .44 | $ | .79 | $ | .82 | ||||||||
Income (loss) from discontinued operations, net of taxes | — | — | — | — | — | |||||||||||||
Net income (loss) attributable to Key common shareholders (b) | .40 | .38 | .44 | .79 | .82 | |||||||||||||
Per common share — assuming dilution | ||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .40 | $ | .38 | $ | .44 | $ | .78 | $ | .81 | ||||||||
Income (loss) from discontinued operations, net of taxes | — | — | — | — | — | |||||||||||||
Net income (loss) attributable to Key common shareholders (b) | .40 | .38 | .44 | .78 | .81 | |||||||||||||
Cash dividends declared per common share | $ | .17 | $ | .17 | $ | .12 | $ | .34 | $ | .225 | ||||||||
Weighted-average common shares outstanding (000) | 999,163 | 1,006,717 | 1,052,652,000 | 1,003,047,000 | 1,054,378,000 | |||||||||||||
Effect of common share options and other stock awards | 8,801 | 9,787 | 13,141,000 | 9,318,000 | 14,561,000 | |||||||||||||
Weighted-average common shares and potential common shares outstanding (000) (c) | 1,007,964 | 1,016,504 | 1,065,793,000 | 1,012,365,000 | 1,068,939,000 | |||||||||||||
(a) | For the three months ended June 30, 2019, March 31, 2019, and June 30, 2018, net securities gains (losses) totaled less than $1 million. For the three months ended June 30, 2019, March 31, 2019, and June 30, 2018, 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. |