KeyCorp (KEY)

Deposits fund loans to businesses and households, and the rate spread supplies most of the result. What distinguishes it from a typical regional bank is advising mid-sized companies on offerings and mergers, which yields fee income usually available only to large banks.

The bank went through a painful restructuring of a securities portfolio bought at low rates and devalued when rates rose: the loss was realised deliberately in order to reinvest at current yields. A large foreign bank took a stake, strengthening its capital. Risks: commercial real estate, deposit costs and book quality. The dividend is high.