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.

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