EX-99.3 4 a2q23erex993.htm EX-99.3
Exhibit 99.3

Consolidated Balance Sheets |
(dollars in millions) |
|  |  | 6/30/2023 | 3/31/2023 | 6/30/2022 |
Assets |  |  |  |
| Loans | $ | 119,011 |  | $ | 119,971 |  | $ | 112,390 |  |
| Loans held for sale | 1,130 |  | 1,211 |  | 1,306 |  |
| Securities available for sale | 37,908 |  | 39,498 |  | 42,437 |  |
| Held-to-maturity securities | 9,189 |  | 9,561 |  | 8,186 |  |
| Trading account assets | 1,177 |  | 1,118 |  | 809 |  |
| Short-term investments | 8,959 |  | 8,410 |  | 2,456 |  |
| Other investments | 1,474 |  | 1,587 |  | 969 |  |
|  | Total earning assets | 178,848 |  | 181,356 |  | 168,553 |  |
| Allowance for loan and lease losses | (1,480) |  | (1,380) |  | (1,099) |  |
| Cash and due from banks | 758 |  | 784 |  | 678 |  |
| Premises and equipment | 652 |  | 628 |  | 638 |  |
| Goodwill | 2,752 |  | 2,752 |  | 2,752 |  |
| Other intangible assets | 75 |  | 85 |  | 118 |  |
| Corporate-owned life insurance | 4,378 |  | 4,372 |  | 4,343 |  |
| Accrued income and other assets | 8,668 |  | 8,512 |  | 10,529 |  |
| Discontinued assets | 386 |  | 410 |  | 496 |  |
|  | Total assets | $ | 195,037 |  | $ | 197,519 |  | $ | 187,008 |  |
Liabilities |  |  |  |
| Deposits in domestic offices: |  |  |  |
|  | Interest-bearing deposits | 111,766 |  | 106,841 |  | 94,892 |  |
|  | Noninterest-bearing deposits | 33,366 |  | 37,307 |  | 50,973 |  |
|  | Total deposits | 145,132 |  | 144,148 |  | 145,865 |  |
| Federal funds purchased and securities sold under repurchase agreements | 1,702 |  | 1,374 |  | 3,234 |  |
| Bank notes and other short-term borrowings | 6,949 |  | 10,061 |  | 2,809 |  |
| Accrued expense and other liabilities | 5,339 |  | 4,861 |  | 4,056 |  |
| Long-term debt | 22,071 |  | 22,753 |  | 16,617 |  |
|  | Total liabilities | 181,193 |  | 183,197 |  | 172,581 |  |
Equity |  |  |  |
| Preferred stock | 2,500 |  | 2,500 |  | 1,900 |  |
| Common shares | 1,257 |  | 1,257 |  | 1,257 |  |
| Capital surplus | 6,231 |  | 6,207 |  | 6,241 |  |
| Retained earnings | 15,759 |  | 15,700 |  | 15,118 |  |
| Treasury stock, at cost | (5,859) |  | (5,868) |  | (5,923) |  |
| Accumulated other comprehensive income (loss) | (6,044) |  | (5,474) |  | (4,166) |  |
|  | Key shareholders’ equity | 13,844 |  | 14,322 |  | 14,427 |  |
| Noncontrolling interests | — |  | — |  | — |  |
|  | Total equity | 13,844 |  | 14,322 |  | 14,427 |  |
Total liabilities and equity | $ | 195,037 |  | $ | 197,519 |  | $ | 187,008 |  |
Common shares outstanding (000) | 935,733 |  | 935,229 |  | 932,643 |  |

Consolidated Statements of Income
(dollars in millions, except per share amounts)
|  |  | Three months ended |  | Six months ended
|  |  | 6/30/2023 | 3/31/2023 | 6/30/2022 |  | 6/30/2023 | 6/30/2022
Interest income |  |  |  |  |  |
| Loans | $ | 1,576 |  | $ | 1,476 |  | $ | 923 |  |  | $ | 3,052 |  | $ | 1,760 |
| Loans held for sale | 17 |  | 13 |  | 10 |  |  | 30 |  | 22 |
| Securities available for sale | 194 |  | 194 |  | 188 |  |  | 388 |  | 361 |
| Held-to-maturity securities | 81 |  | 74 |  | 48 |  |  | 155 |  | 94 |
| Trading account assets | 15 |  | 12 |  | 7 |  |  | 27 |  | 13 |
| Short-term investments | 111 |  | 42 |  | 13 |  |  | 153 |  | 17 |
| Other investments | 16 |  | 13 |  | 4 |  |  | 29 |  | 6 |
|  | Total interest income | 2,010 |  | 1,824 |  | 1,193 |  |  | 3,834 |  | 2,273 |
Interest expense |  |  |  |  |  |
| Deposits | 531 |  | 350 |  | 20 |  |  | 881 |  | 34 |
| Federal funds purchased and securities sold under repurchase agreements | 48 |  | 22 |  | 6 |  |  | 70 |  | 6 |
| Bank notes and other short-term borrowings | 104 |  | 78 |  | 9 |  |  | 182 |  | 12 |
| Long-term debt | 349 |  | 275 |  | 61 |  |  | 624 |  | 110 |
|  | Total interest expense | 1,032 |  | 725 |  | 96 |  |  | 1,757 |  | 162 |
Net interest income | 978 |  | 1,099 |  | 1,097 |  |  | 2,077 |  | 2,111 |
Provision for credit losses | 167 |  | 139 |  | 45 |  |  | 306 |  | 128 |
Net interest income after provision for credit losses | 811 |  | 960 |  | 1,052 |  |  | 1,771 |  | 1,983 |
Noninterest income |  |  |  |  |  |
| Trust and investment services income | 126 |  | 128 |  | 137 |  |  | 254 |  | 273 |
| Investment banking and debt placement fees | 120 |  | 145 |  | 149 |  |  | 265 |  | 312 |
| Service charges on deposit accounts | 69 |  | 67 |  | 96 |  |  | 136 |  | 187 |
| Operating lease income and other leasing gains | 23 |  | 25 |  | 28 |  |  | 48 |  | 60 |
| Corporate services income | 86 |  | 76 |  | 96 |  |  | 162 |  | 187 |
| Cards and payments income | 85 |  | 81 |  | 85 |  |  | 166 |  | 165 |
| Corporate-owned life insurance income | 32 |  | 29 |  | 35 |  |  | 61 |  | 66 |
| Consumer mortgage income | 14 |  | 11 |  | 14 |  |  | 25 |  | 35 |
| Commercial mortgage servicing fees | 50 |  | 46 |  | 45 |  |  | 96 |  | 81 |
| Other income | 4 |  | — |  | 3 |  |  | 4 |  | (2) |
|  | Total noninterest income | 609 |  | 608 |  | 688 |  |  | 1,217 |  | 1,364 |
Noninterest expense |  |  |  |  |  |
| Personnel | 622 |  | 701 |  | 607 |  |  | 1,323 |  | 1,237 |
| Net occupancy | 65 |  | 70 |  | 78 |  |  | 135 |  | 151 |
| Computer processing | 95 |  | 92 |  | 78 |  |  | 187 |  | 155 |
| Business services and professional fees | 41 |  | 45 |  | 52 |  |  | 86 |  | 105 |
| Equipment | 22 |  | 22 |  | 26 |  |  | 44 |  | 49 |
| Operating lease expense | 21 |  | 20 |  | 27 |  |  | 41 |  | 55 |
| Marketing | 29 |  | 21 |  | 34 |  |  | 50 |  | 62 |
| Intangible asset amortization | — |  | — |  | — |  |  | — |  | — |
| Other expense | 181 |  | 205 |  | 176 |  |  | 386 |  | 334 |
|  | Total noninterest expense | 1,076 |  | 1,176 |  | 1,078 |  |  | 2,252 |  | 2,148 |
Income (loss) from continuing operations before income taxes | 344 |  | 392 |  | 662 |  |  | 736 |  | 1,199 |
| Income taxes | 58 |  | 81 |  | 132 |  |  | 139 |  | 222 |
Income (loss) from continuing operations | 286 |  | 311 |  | 530 |  |  | 597 |  | 977 |
| Income (loss) from discontinued operations, net of taxes | 1 |  | 1 |  | 3 |  |  | 2 |  | 4 |
Net income (loss) | 287 |  | 312 |  | 533 |  |  | 599 |  | 981 |
| Less: Net income (loss) attributable to noncontrolling interests | — |  | — |  | — |  |  | — |  | — |
Net income (loss) attributable to Key | $ | 287 |  | $ | 312 |  | $ | 533 |  |  | $ | 599 |  | $ | 981 |
Income (loss) from continuing operations attributable to Key common shareholders | $ | 250 |  | $ | 275 |  | $ | 504 |  |  | $ | 525 |  | $ | 924 |
Net income (loss) attributable to Key common shareholders | 251 |  | 276 |  | 507 |  |  | 527 |  | 928 |
Per common share |  |  |  |  |  |
Income (loss) from continuing operations attributable to Key common shareholders | $ | .27 |  | $ | .30 |  | $ | .54 |  |  | $ | .57 |  | $ | 1 |
Income (loss) from discontinued operations, net of taxes | — |  | — |  | — |  |  | — |  | — |
Net income (loss) attributable to Key common shareholders (a) | .27 |  | .30 |  | .55 |  |  | .57 |  | 1 |
Per common share — assuming dilution |  |  |  |  |  |
Income (loss) from continuing operations attributable to Key common shareholders | $ | .27 |  | $ | .30 |  | $ | .54 |  |  | $ | .56 |  | $ | .99 |
Income (loss) from discontinued operations, net of taxes | — |  | — |  | — |  |  | — |  | — |
Net income (loss) attributable to Key common shareholders (a) | .27 |  | .30 |  | $ | .54 |  |  | .57 |  | 1.00 |
Cash dividends declared per common share | $ | .205 |  | $ | .205 |  | $ | .195 |  |  | $ | .41 |  | $ | .39 |
Weighted-average common shares outstanding (000) | 926,741 |  | 926,490 |  | 924,302 |  |  | 926,807 |  | 923,717 |
| Effect of common share options and other stock awards | 3,713 |  | 7,314 |  | 7,506 |  |  | 5,513 |  | 9,087 |
Weighted-average common shares and potential common shares outstanding (000) (b) | 930,454 |  | 933,804 |  | 931,808 |  |  | 932,320 |  | 932,805 |

(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.