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. |