EX-99.3 4 l32489aexv99w3.htm EX-99.3 EX-99.3
Exhibit 99.3 (1 of 2)
KeyCorp
Consolidated Balance Sheets

(dollars in millions)
                         
    6-30-08     3-31-08     6-30-07  
 
ASSETS
                       
Loans
  $ 75,855     $ 76,444     $ 66,692  
Loans held for sale
    1,833       1,674       4,546  
Securities available for sale
    8,312       8,419       7,819  
Held-to-maturity securities
    25       29       37  
Trading account assets
    1,483       1,015       994  
Short-term investments
    826       577       471  
Other investments
    1,559       1,561       1,602  
 
Total earning assets
    89,893       89,719       82,161  
Allowance for loan losses
    (1,421 )     (1,298 )     (945 )
Cash and due from banks
    1,912       1,730       1,818  
Premises and equipment
    748       712       600  
Operating lease assets
    1,089       1,070       1,110  
Goodwill
    1,598       1,599       1,202  
Other intangible assets
    146       164       110  
Corporate-owned life insurance
    2,917       2,894       2,822  
Derivative assets
    1,693       1,508       374  
Accrued income and other assets
    2,969       3,394       3,715  
 
Total assets
  $ 101,544     $ 101,492     $ 92,967  
 
                 
 
                       
LIABILITIES
                       
Deposits in domestic offices:
                       
NOW and money market deposit accounts
  $ 27,278     $ 26,527     $ 23,315  
Savings deposits
    1,809       1,826       1,613  
Certificates of deposit ($100,000 or more)
    8,699       8,330       6,197  
Other time deposits
    12,541       12,933       11,832  
 
Total interest-bearing deposits
    50,327       49,616       42,957  
Noninterest-bearing deposits
    10,561       10,896       14,199  
Deposits in foreign office — interest-bearing
    3,508       4,190       3,443  
 
Total deposits
    64,396       64,702       60,599  
Federal funds purchased and securities sold under repurchase agreements
    2,088       3,503       4,362  
Bank notes and other short-term borrowings
    5,985       5,464       2,476  
Derivative liabilities
    637       465       248  
Accrued expense and other liabilities
    4,626       4,429       5,000  
Long-term debt
    15,106       14,337       12,581  
 
Total liabilities
    92,838       92,900       85,266  
 
                       
SHAREHOLDERS’ EQUITY
                       
Preferred stock
    650              
Common shares
    577       492       492  
Capital surplus
    2,544       1,659       1,652  
Retained earnings
    7,461       8,737       8,720  
Treasury stock, at cost
    (2,675 )     (2,689 )     (2,994 )
Accumulated other comprehensive income (loss)
    149       393       (169 )
 
Total shareholders’ equity
    8,706       8,592       7,701  
 
                       
 
Total liabilities and shareholders’ equity
  $ 101,544     $ 101,492     $ 92,967  
 
                 
 
                       
Common shares outstanding (000)
    485,662       400,071       389,362  
 

 


 

Exhibit 99.3 (2 of 2)
KeyCorp
Consolidated Statements of Income

(dollars in millions, except per share amounts)
                                         
    Three months ended     Six months ended  
    6-30-08     3-31-08     6-30-07     6-30-08     6-30-07  
 
INTEREST INCOME
                                       
Loans
  $ 717     $ 1,123     $ 1,176     $ 1,840     $ 2,337  
Loans held for sale
    20       87       82       107       157  
Securities available for sale
    111       109       106       220       206  
Held-to-maturity securities
          1             1       1  
Trading account assets
    10       13       7       23       14  
Short-term investments
    8       9       9       17       20  
Other investments
    14       12       15       26       28  
 
Total interest income
    880       1,354       1,395       2,234       2,763  
 
                                       
INTEREST EXPENSE
                                       
Deposits
    347       428       447       775       880  
Federal funds purchased and securities sold under repurchase agreements
    15       28       59       43       108  
Bank notes and other short-term borrowings
    27       39       18       66       29  
Long-term debt
    133       146       185       279       381  
 
Total interest expense
    522       641       709       1,163       1,398  
 
 
                                       
NET INTEREST INCOME
    358       713       686       1,071       1,365  
Provision for loan losses
    647       187       53       834       97  
 
Net interest income after provision for loan losses
    (289 )     526       633       237       1,268  
 
                                       
NONINTEREST INCOME
                                       
Trust and investment services income
    138       129       115       267       240  
Service charges on deposit accounts
    93       88       84       181       159  
Investment banking and capital markets income
    80       8       52       88       96  
Operating lease income
    68       69       66       137       130  
Letter of credit and loan fees
    51       37       45       88       83  
Corporate-owned life insurance income
    28       28       32       56       57  
Electronic banking fees
    27       24       25       51       49  
Net gains (losses) from loan securitizations and sales
    33       (101 )     33       (68 )     42  
Net securities (losses) gains
    (1 )     3       2       2       (45 )
Net (losses) gains from principal investing
    (14 )     9       90       (5 )     119  
Gain from redemption of Visa Inc. shares
          165             165        
Gain from sale of McDonald Investments branch network
                            171  
Other income
    52       69       105       121       202  
 
Total noninterest income
    555       528       649       1,083       1,303  
 
                                       
NONINTEREST EXPENSE
                                       
Personnel
    404       409       411       813       839  
Net occupancy
    62       66       59       128       122  
Computer processing
    43       47       49       90       100  
Operating lease expense
    55       58       55       113       107  
Professional fees
    33       23       26       56       52  
Equipment
    23       24       24       47       49  
Marketing
    21       14       20       35       39  
Other expense
    140       91       171       231       291  
 
Total noninterest expense
    781       732       815       1,513       1,599  
 
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
    (515 )     322       467       (193 )     972  
Income taxes
    611       104       130       715       277  
 
(LOSS) INCOME FROM CONTINUING OPERATIONS
    (1,126 )     218       337       (908 )     695  
Loss from discontinued operations, net of taxes
                (3 )           (11 )
 
NET (LOSS) INCOME
  $ (1,126 )   $ 218     $ 334     $ (908 )   $ 684  
 
                             
 
                                       
Net (loss) income applicable to common shares
  $ (1,126 )   $ 218     $ 334     $ (908 )   $ 684  
 
                                       
Per common share:
                                       
(Loss) income from continuing operations
  $ (2.70 )   $ .55     $ .86     $ (2.23 )   $ 1.76  
Net (loss) income
    (2.70 )     .55       .85       (2.23 )     1.73  
 
                                       
Per common share — assuming dilution:
                                       
(Loss) income from continuing operations
  $ (2.70 )   $ .54     $ .85     $ (2.23 )   $ 1.74  
Net (loss) income
    (2.70 )     .54       .84       (2.23 )     1.71  
Cash dividends declared per common share
  $ .375           $ .365     $ .375     $ .73  
Weighted-average common shares outstanding (000)
    416,629       399,121       392,045       407,875       394,944  
Weighted-average common shares and potential common shares outstanding (000)
    416,629       399,769       396,918       407,875       400,180