NEW YORK ( TheStreet) -- Despite the continual gloomy talk about the banking industry, nine out of the ten bank holding companies owing the most bailout money for government assistance through the Troubled Assets Relief Program, or TARP, have made remarkable comebacks this year, although the lot are still trading at historically low valuations to tangible book value.

10. First Horizon

Company Profile

Shares of First Horizon National Corp. ( FHN) of Memphis, Tenn. closed at $11.25 Wednesday, down 13% year-to-date. The company owes $866.5 million in TARP money.

Please see Laurie Kulikowski's coverage of First Horizon's Long Road Back for a look at the company's business strategy.

Income Statement

First Horizon returned to profitability in the second quarter, reporting net income available to common shareholders of $2.7 million, or a penny a share, following a first-quarter loss to common shareholders of $27.7 million, or 12 cents a share, and a loss of $123.2 million, or 54 cents a share, a year earlier. Net income available to common shareholders excludes dividends paid to preferred shareholders (including the government, which holds preferred shares for the TARP money), which came to $14.9 million during the second quarter.

Following the trend for many large banks that reported a boost to second-quarter earnings through releases of loan loss reserves, First Horizon's provision for loan losses was $70 million while net charge-offs - loan losses less recoveries - totaled $133 million during the second quarter. The "earnings release" during the second quarter was $63 million.

Balance Sheet

According to regulatory data supplied by SNL Financial, First Horizon had $26.3 billion in total assets as of June 30. Nonperforming assets - including loans past due 90 or more days or in nonaccrual status and repossessed real estate - comprised 3.89% of total assets as of June 30, down from 4.52% the previous quarter and 4.83% a year earlier.

In comparison, the aggregate "noncurrent assets" ratio for all U.S. banks and thrifts reported by the Federal Deposit Insurance Corporation was 3.31% as of June 30.

First Horizon's annualized ratio of net charge-offs to average loans for the second quarter was 3.02%, declining from 4.13% during the first quarter and 4.62% during the second quarter of 2009. The national aggregate net charge-off ratio for the second quarter was 2.64% according to the FDIC. Loan loss reserves covered 4.42% of total loans as of June 30.

While First Horizon's net interest margin - essentially the difference between a bank's average yield on loans and investments - followed the industry trend in the low interest rate environment, increasing to a tax-adjusted 3.19% for the second quarter from 3.06% a year earlier. The national aggregate net interest margin for the second quarter was 3.81% according to the FDIC, increasing from 3.43% a year earlier.

As of June 30, First Horizon's Tier 1 leverage ratio was 13.74% and its total risk-based capital ratio was 21.34%, well-above the 5% and 10% required for most banks to be considered well-capitalized by regulators and the highest regulatory capital ratios among this group of ten holding companies.

Of course, regulatory capital includes the TARP money. As discussed in TheStreet's Bank Stocks: Taking Off the Rose-Colored Glasses, investors and analysts have focused during the credit crisis on banks' tangible common equity ratios, which exclude all preferred and trust-preferred equity classes. Analysts typically consider 7% to be a good level of tangible common equity for a profitable bank in the current environment. First Horizon's TCE ratio as of June 30 was 7.63%.

Stock Ratios

Shares trade for 1.3 times tangible book value, which would have been considered quite low before the crisis but is actually on the high-side for this group of ten bank holding companies. Looking at share price multiples to forward earnings, First Horizon trades for 24.5 times the 2011 consensus earnings estimate of 46 cents a share among analysts polled by Thomson Reuters. The shares trade for 11.8 times the 2012 consensus earnings estimate of 95 cents a share.

Analyst Ratings

Out of 24 analysts covering the shares, nine rate First Horizon a buy, 14 recommend holding the shares and one analyst recommends investors sell the shares.

9. Popular, Inc.

Company Profile

Shares of Popular, Inc. ( BPOP) closed at $2.80 Wednesday, up 24% year-to-date.

Puerto Rico's largest bank owes $935 million in TARP money and converted the preferred shares held by the Treasury to trust-preferred shares in August 2009. While the company continues to pay a 5% dividend on the money owed to the government, the conversion lowered the company's accumulated deficit by $485 million because Popular assumed a discount rate of 16%, taking into account the much greater dividend rate it would pay if it had offered trust-preferred shares in the open market.

Popular acquired the failed Westernbank Puerto Rico on April 30.

Income Statement

The company reported a second quarter net loss to common shareholders of $247.5 million or 29 cents a share, following a first-quarter net loss of $85 million or 13 cents a share, and a loss of $207.8 million, or 71 cents a share, a year earlier.

The second-quarter loss included a one-time $192 million dividend on preferred shares, which were issued pending shareholder authorization to issue more common shares. Upon approval in May, the new preferred shares were all converted to common, and the company raised a total of $1.15 billion in capital during the quarter.

Balance Sheet

Total assets were $42.4 billion as of June 30 and the nonperforming assets ratio was 6.55%, down from 7.43% the previous quarter but up from 5.87% a year earlier. The second-quarter net charge-off ratio was 3.18%, declining from 3.84% in the first quarter and 4.15% in the second quarter of 2009. Loan loss reserves covered 4.79% of total loans.

The company's Tier 1 leverage ratio was 8.79% as of June 30, and its total risk-based capital ratio was 13.86%. The tangible common equity ratio was 6.67%.

Stock Ratios

Shares trade just above tangible book value, according to SNL Financial, and 14 times the forward consensus earnings estimate of 20 cents a share for 2011. Moving out to 2012, the consensus earnings estimate is 39 cents a share, for a forward P/E of 7.2.

Analyst Ratings

Out of seven analysts covering Popular, six have buy ratings and one recommends holding the shares. Sterne Agee analyst Adam Barkstrom rates the company a buy with a 12-month price target of $5.00, which implies 79% upside potential for the shares. In a September 1 report, Barkstrom said his firm believed the market was "providing an attractive opportunity to establish and/or add to current positions as the market is discounting recent transactions that have enhanced franchise value."

8. Synovus Financial

Company Profile

Shares of Synovus Financial ( SNV) of Columbus, Ga. closed at $2.48 Wednesday, up 23% year-to-date. The company owes $967.9 million in TARP money.

Income Statement

Synovus reported a second-quarter net loss to common shareholders of $242.6 million or 36 cents a share, compared to a first-quarter loss of $229.8 million or 47 cents a share and a loss of $601.2 million or $1.82 a share for the second quarter of 2009. Driving the year-over-year earnings improvement was a reduction in the provision for loan loss reserves to $299 million during the second quarter from $631.5 million a year earlier. With net charge-offs totaling $433 million during the second quarter, the "reserve release" was $134 million.

Balance Sheet

The company had $32.4 billion in total assets as of June 30, with a nonperforming assets ratio of 4.90%, improving from 5.79% the previous quarter and 5.09% a year earlier. The ratio of net charge-offs to loan loss reserves for the second quarter was 7.15%, compared to 5.03% during the first quarter and 5.04% for the first quarter of 2009.

The reserve release and lowering of the reserve coverage ratio to 3.55% of total loans, were strong signs of management's confidence that the improvement in asset quality will continue.

The tier 1 leverage ratio was 10.12% and the total risk-based capital ratio were 16.91% as of June 30. Synovus's tangible common equity ratio was 7.58%.

Stock Ratios

Shares trade for 0.8 times tangible book value, making Synovus the cheapest by this measure among this group of ten companies. The consensus among analysts polled by Thomson Reuters is for the company to return to profitability in 2012, earning 30 cents a share.

Analyst Ratings

Out of 21 analysts covering Synovus, five have buy ratings, 14 recommend investors hold the shares and 2 recommend selling the shares.

7. Huntington Bancshares

Company Profile

Huntington Bancshares ( HBAN) of Columbus, Ohio saw its stock rise 58% year-to-date through Wednesday, closing at $5.64.

The company owes $1.4 billion in TARP money and CEO Stephen Steinour recently told TheStreet's Debra Borchardt that Huntington has no specific timeframe to repay TARP but would rather focus on growing market share.

Huntington Announced on Wednesday an agreement to open over 100 branches within Giant Eagle Supermarkets.

Income Statement

The company reported second-quarter net income to common shareholders of $19.3 million or 3 cents a share following $10.4 million or a penny a share in the first quarter and a loss to common shareholders of $182.5 million or 40 cents a share for the second quarter of 2009.

Please see TheStreet's earnings coverage for more on Huntington's second-quarter results.

Balance Sheet

Total assets were $51.8 billion and the nonperforming assets ratio was 2.70% as of June 30, declining from 3.87% the previous quarter and 4.10% a year earlier. The second-quarter net charge-off ratio was 2.99% and reserves covered 3.72% of total loans as of June 30.

Huntington's Tier 1 leverage ratio was 10.45% and its total risk-based capital ratio was 14.79% as of June 30. The tangible common equity ratio was 5.95% according to SNL Financial, and was the lowest among this group of ten bank holding companies.

Stock Ratios

Shares trade for 1.3 times tangible book value and have a forward P/E of 12.8 based on the consensus earnings estimate for 2011 of 44 cents a share. Moving ahead to 2012, the consensus earnings estimate is 67 cents a share, dropping the forward P/E to 8.4.

Analyst Ratings

Out of 17 analysts covering Huntington, seven have buy ratings for the shares, seven recommend holding and three recommend investors sell.

6. Zions Bancorporation

Company Profile

Shares of Zions Bancorporation ( ZION) of Salt Lake City closed at $21.06 Wednesday, returning a whopping 61% year to date, for the best price recovery among this group of 10 holding companies during 2010. The company owes $1.4 billion in TARP money.

Income Statement

Zions reported a net loss to common shareholders of $135.2 million, or 84 cents a share, for the second quarter, after a first-quarter loss of $86.5 million, or 57 cents a share, and loss of $23.8 million, or 21 cents a share, a year earlier. The decline in earnings from the first quarter reflected expenses from a security swap with Deutsche Bank ( DB), which Zions said would lower its credit risk.

Balance Sheet

Total assets were $52.2 billion in total assets as of June 30, and nonperformers comprised 5.19% compared to 5.39% the previous quarter and 4.32% a year earlier. The second-quarter net charge-off ratio was 2.64% and reserves covered 4.09% of total loans as of June 30.

As of June 30, the Tier 1 leverage ratio was 11.80% and the total risk-based capital ratio was 15.25%. Zions Bancorporation's tangible common equity ratio was 6.86% according to SNL Financial. On September 21, Zions announced an offering of seven million warrants that had yet to be priced, but would each give the right purchase a common share at an exercise price of $36.63. The company also said it had raised $75 million in capital equity during the third quarter up to that point.

Stock Ratios

Shares trade at tangible book value and 46.8 times the consensus estimate of 45 cents for 2011 among analysts polled by Thomson Reuters, moving down to a far-more palatable forward P/E of 10.5 based on the consensus earnings estimate of two dollars a share for 2012..

Analyst Ratings

Among 23 analysts covering Zions Bancorporation, four have buy ratings, 18 recommend investors hold and two recommend selling the shares.

5. Marshall & Ilsley

Company Profile

Shares of Marshall & Ilsley ( MI) of Milwaukee closed at $7.00 Wednesday, returning 31% year-to-date. The company owes $1.7 billion in TARP money.

Income Statement

Marshall & Ilsley reported a second-quarter net loss to common shareholders of $173.8 million, or 33 cents a share, following a first-quarter loss of $140.5 million ,or 27 cents a share, when the company reported a one-time gain of $48.3 million from the sale of its merchant processing portfolio. For the second quarter of 2009, the net loss to common shareholders was $234 million or 83 cents a share.

While a high level of loan charge-offs kept the company in the red, Marshall & Ilsley's tax-adjusted net interest margin improved to 3.17% for the second quarter from 2.79% a year earlier, according to SNL Financial.

Balance Sheet

Total assets were 54 billion as of June 30 and the nonperforming assets ratio was 4.18%, declining from 4.27% the previous quarter and 4.67% a year earlier. The net charge-off ratio was 4.16% and with reserves covering 3.67% of total loans, it appeared the company would continue to make large provisions for loan loss reserves over coming quarters.

As of June 30, Marshall & Ilsley's Tier 1 leverage ratio was 9.12% and its total risk-based capital ratio was 14.35%. According to SNL Financial, the company's tangible common equity ratio was 8.19%, the highest among this group of ten banks holding companies.

Stock Ratios

Shares trade for 0.8 times tangible book value. The consensus estimate is for the company to earn 3 cents a share in 2011 and 71 cents in 2012. Based on the 2012 estimate, Marshall & Ilsley's forward P/E would be 9.9.

Analyst Ratings

Out of 19 analysts covering Marshall & Ilsley, five recommend buying the shares, while 11 have hold ratings and three recommend investors sell.

4. KeyCorp

Company Profile

KeyCorp ( KEY) of Cleveland, Ohio has seen its shares rise 43% this year to close at $7.95 Wednesday. The company owes $2.5 billion in TARP money.

Income Statement

The company reported second-quarter net income to common shareholders of $29 million, or 6 cents a share, compared to net losses to common shareholders of $96 million, or 11 cents, for the first quarter and $394 million, or 68 cents a share, in the second quarter of 2009. KeyCorp's improving asset quality enabled the company to release loan loss reserves during the first and second quarters. For the second quarter, net loan charge-offs totaled $557 million while the provision for loan loss reserves was $413 million.

Balance Sheet

Total assets were $94.3 million as of June 30. The nonperforming assets ratio was 2.60% and the net charge-off ratio for the second quarter was 3.02%, while reserves covered 3.86% of total loans as of June 30.

KeyCorp's Tier 1 leverage ratio was 12.09% and its total risk-based capital ratio was 17.80%. The company's tangible common equity ratio was 7.65% according to SNL Financial.

Stock Ratios

The shares trade just below tangible book value and for 21 times the consensus 2011 earnings estimate of 38 cents a share among analysts polled by Thomson Reuters. Based on the consensus estimate of 66 cents a share for 2012, the forward P/E would be 12.

Analyst Ratings

Out of 21 analysts covering KeyCorp, three recommend buying the shares, 14 have hold ratings and four recommend selling.

3. Fifth Third Bancorp

Company Profile

Shares of Fifth Third Bancorp ( FITB) of Cincinnati, Ohio closed at $11.90 Wednesday, 24% year-to-date. The company owes $3.4 billion in TARP money.

Income Statement

The company reported second net income to common stockholders of $130 million or 16 cents a share, compared a net loss to common stockholders of $72 million or nine cents a share in the first quarter and net income to common stockholders of $856 million or $1.15 a share in the second quarter of 2009, when Fifth Third recorded a $1.8 billion gain on the sale of its financial institutions processing business.

A major factor in the company's second-quarter profit was release in reserves brought about by an improvement in asset quality. Fifth Third's second quarter loan loss provision was $325 million while its net loan charge-offs were $433 million, for a release of $108 million in reserves, however, the company's loan loss reserves were left covering a high 4.71% of total loans.

Balance Sheet

Total assets were $112 billion as of June 30. The nonperforming assets ratio was 3.14%, declining from 3.38% a year earlier. The second-quarter net charge-off ratio was 2.21%.

As of June 30, Fifth Third's Tier 1 leverage ratio was 12.24%, its total risk-based capital ratio was 18.00% and its tangible common equity ratio was 7.79%.

Stock Ratios

Fifth Third's shares trade for 1.3 times tangible book value according to SNL Financial, and 12.1 times the consensus 2011 earnings estimate of 98 cents a share. The forward P/E would drop to 8.5 based on the 2012 consensus estimate of $1.41 in earnings per share among analysts polled by Thomson Reuters.

Analyst Ratings

Among the 21 analysts covering Fifth Third, four have buy ratings, 14 recommend holding the shares and three recommend investors sell the shares.

2. Regions Financial

Company Profile

Shares of Regions Financial ( RF) of Birmingham, Ala. closed at $7.21 Wednesday, returning 35% year-to-date. The company owes $3.5 billion in TARP money.

Income Statement

Regions reported a second-quarter net loss to common shareholders of $335 million, or 28 cents a share, compared to net losses to common shareholders of $255 million, or 21 cents a share, in the first quarter and $244 million or 28 cents a share for the second quarter of 2009. Results for the second quarter of 2010 included a charge of $200 million to cover what the company termed "probably" losses by the company's Morgan Keegan subsidiary, which is facing regulatory actions by the Securities and Exchange Commission and several states related to "certain funds previously administered."

Excluding the Morgan Keegan charge, Regions said the net loss would have been 11 cents a share.

The company's second-quarter provision for loan losses was $651 million, slightly exceeding net loan charge-offs.

The second quarter tax-adjusted net interest margin was 2.90% according to SNL Financial, improving from 2.62% a year earlier.

Balance Sheet

Total assets were $135.4 billion as of June 30. The nonperforming assets ratio was 3.59% and the second-quarter net charge-off ratio was 2.95%. Loan loss reserves covered 3.65% of total loans.

Regions Financial's Tier 1 leverage ratio was 9.10% and the total risk-based capital ratio was 15.90% as of June 30. The tangible common equity ratio was 6.26%, and many analysts assume the company will need to raise significant capital to continue working through its problem loans and exit TARP.

Christopher Marinac of FIG Partners said in an August report that his firm's earnings estimates for the company reflect "$2 Billion in new capital by early 2011 at a sub$6.50 share price or about 100% of our estimated tangible book."

Stock Ratios

The shares trade for 1.1 times tangible book value and 21.9 times the consensus earnings estimate of 33 cents for 2011, and 9.4 times the 2012 consensus earnings estimate of 77 cents a share. Of course, the P/E ratios don't take into account the dilution of shares that would result from an offering of common stock.

Analyst Ratings

Out of 19 analysts covering Regions Financial, only one has a buy rating while 16 recommend investors hold the shares and two recommend selling.

1. SunTrust Banks

Company Profile

The bank holding company owing the most TARP money is SunTrust Banks of Atlanta, Ga., which owes the government $4.85 billion. Shares closed at $25.80, returning 28% year-to-date.

Income Statement

For the second quarter, SunTrust reported a net loss to common stockholders of $56.1 million or 11 cents a share, narrowing considerably from net losses to common stockholders of $229.2 million or 46 cents a share in the first quarter and $164.4 million or 41 cents a share a year earlier.

Following the pattern for most of the large regional players, the improvement in SunTrust's credit quality has allowed the bank to reduce its provision for loan losses for three straight quarters. The second-quarter provision was a still-high $702 million, declining from $776 million the previous quarter and $962 million a year earlier.

SunTrust's net interest margin has also improved, to a tax-adjusted 3.18% for the second quarter from 2.83% in the second quarter of 2009.

Please see TheStreet's earnings coverage for more on SunTrust's second-quarter results.

Balance Sheet

SunTrust had $170.7 billion in total assets as of June 30 and was the ninth largest U.S. bank holding company by assets. The company's nonperforming assets ratio was 3.34% as of June 30, improving from 3.68% the previous quarter and 3.71% a year earlier. The net charge-off ratio for the second quarter was 2.48% and loan loss reserves covered 2.72% of total loans.

The Tier 1 capital ratio was 10.94% and the total risk-based capital ratio was 16.96%. With a tangible common equity ratio of 7.01% as of June 30 according to SNL Financial, analyst sentiment is mostly neutral. Guggenheim Securities analyst Marty Mosby has a neutral rating on the shares and said in a recent report that "further capital issuance and repositioning of the composition of capital could create incremental dilution."

Stock Ratios

The shares trade for 1.1 times tangible book value and 31 times the consensus earnings estimate of 82 cents a share among analysts polled by Thomson Reuters. Moving out to the $2.39 a share consensus earnings estimate for 2012, the forward P/E would drop to 10.8.

Analyst Ratings

Out of 28 analysts covering SunTrust, seven recommend buying the shares, 16 have hold ratings and five recommend investors part with the shares.

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-- Written by Philip van Doorn in Jupiter, Fla.

>To see these stocks in action, visit the 10 Banks That Still Owe TARP portfolio on Stockpickr.

>To contact the writer of this article, click here: Philip van Doorn.

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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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