Best Electric Utility Stocks To Own For 2015

Best Electric Utility Stocks To Own For 2015: KeyCorp (KEY)

KeyCorp is a bank holding company for KeyBank National Association (KeyBank). Through KeyBank and certain other subsidiaries, the Company provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance and investment banking products and services to individual, corporate and institutional clients through two business segments: Key Community Bank and Key Corporate Bank. As of December 31, 2011, these services were provided through KeyBank's 1,058 full-service retail banking branches in 14 states, additional offices, a telephone banking call center services group and a network of 1,579 automated teller machines (ATMs) in 15 states. On January 17, 2012, the Company opened another national bank subsidiary.

In addition to the banking services of accepting deposits and making loans, the Bank and trust company subsidiaries offer personal and corporate trust services, personal financial services, access to mutual funds, cash management services, investment banking and capital markets products, and international banking services. Through its bank, trust company and investment adviser subsidiaries, the Company provides investment management services to clients that include corporate and public retirement plans, foundations and endowments, individuals and trust funds. The Company provides other financial services - both within and outside of its primary banking markets - through various nonbank subsidiaries. These services include community development financing, securities underwriting and brokerage. It is also an equity participant in a joint venture that provides merchant services to businesses.

Lending Activities

As of December 31, 2011, the Company's Commercial, Financial and Agricultural loans, also referred to as Commercial and Industrial, represented 39%! of its total loan portfolio. As of December 31, 2011, commercial real estate loans represented approxima tely 19% of its total loan portfolio. These loans include bo! th owner and nonowner-occupied properties and constitute approximately 27% of its commercial loan portfolio. Its commercial real estate lending business is conducted through two primary sources: its 14-state banking franchise, and Real Estate Capital and Corporate Banking Services. The Company conducts financing arrangements through its equipment finance line of business. Commercial lease financing receivables represented 17% of commercial loans at December 31, 2011. The home equity portfolio is the largest segment of its consumer loan portfolio.

Investment Activities

The Company's securities portfolio totaled $18 billion at December 31, 2011. Available-for-sale securities were $16 billion at December 31, 2011. Held-to-maturity securities were $2.1 billion at December 31, 2011. At December 31, 2011, it had $2.1 billion in collateralized mortgage obligations (CMOs) in its held-to-maturity securities portfolio. At December 31, 2011, the Company had $15.9 billion invested in CMOs and other mortgage-backed securities in the available-for-sale portfolio. Federal Agency CMOs constitute most of its held-to-maturity securities along with foreign bonds and preferred equity securities. The investments in equity and mezzanine instruments made by its principal investing unit represented 61% of other investments at December 31, 2011. They include direct investments (investments made in a particular company), as well as indirect investments (investments made through funds that include other investors).

Sources of Funds

Domestic deposits are the Company's primary source of funding. During the year ended December 31, 2011, these deposits averaged $58.5 billion and represented 80% of the funds it used to support loans and other earning assets. Wholesale funds, consisting of deposits in its foreig! n office ! and short-term borrowings, averaged $3.4 billion during 2011. At December 31, 2011, the Company had $4. 7 billion in time deposits of $100,000 or more.

Advisors' Opinion:

• [By Jayson Derrick]

  KeyCorp (NYSE: KEY) reported its third quarter results this morning. The company earned $0.23 per share, missing the consensus estimate of $0.26. Revenue of $998.0 million missed the consensus estimate of $1.04 billion. Net income for the quarter fell to $197 million from $229 million in the same quarter a year ago as non-interest income fell $42 million from a year ago due to $27 million in lower operating lease income and other leasing gains due to an early termination of a leveraged lease in the prior year. The company saw its book value per share increase to $11.77 from $11.65 last quarter. Analysts at Citigroup issued a midday upgrade to Buy from Neutral after shares fell more than 10 percent during the trading session. Shares hit new 52-week lows of $11.59 before closing the day at $12.14, down 5.82 percent.

• [By Laura Brodbeck]

  Thursday

  Earnings Expected From: SAP AG (NYSE: SAP), Novartis AG (NYSE: NVS), UnitedHealth Group Incorporated (NYSE: UNH), Mattel, Inc, (NASDAQ: MAT), Key Corp (NYSE: KEY), Philip Morris International (NYSE: PM), Morgan Stanley (NYSE: MS), PPG Industries, Inc (NYSE: PPG), The Blackstone Group L.P. (NYSE: BX), Schlumberger N.V. (NYSE: SLB), International Business Machines (NYSE: IBM), Google Inc. (NASDAQ: GOOG) Economic Releases Expected:  Chinese house prices, US housing starts, eurozone CPI, Hong Kong’s unemployment rate

  Friday

source from Top Stocks For 2015:http://www.topstocksblog.com/best-electric-utility-stocks-to-own-for-2015-2.html