KeyCorp and Huntington Bancshares Inc , two of Ohio's largest banks, announced plans on Wednesday to raise common equity, as they try to position themselves to repay federal bailout money.

Cleveland-based KeyCorp offered to swap common stock for as much as $1.3 billion of convertible preferred stock and trust preferred securities, in an exchange offer expiring June 30 and arranged by JPMorgan .

Meanwhile, Columbus-based Huntington said it planned to sell $300 million of common stock, on top of $76 million it has sold since May 20.

KeyCorp was one of 19 large banks to undergo government stress tests of their ability to weather a deep recession. Regulators ordered KeyCorp to raise $1.8 billion, and it has said it has already raised $1.3 billion. It also received $2.5 billion from the Treasury Department's Troubled Asset Relief Program.

Huntington is roughly half as large as KeyCorp, and took $1.4 billion from TARP. It has this quarter undertaken several actions to boost capital. Chief Executive Stephen Steinour said that with the latest capital-raising, we expect to fully achieve our capital objectives.

Like many banks, KeyCorp and Huntington have struggled in recent quarters with rising credit losses, which have hurt profitability and their stock prices. Both have reduced their quarterly dividends to a penny per share.

In morning trading, KeyCorp shares were unchanged at $4.82 on the New York Stock Exchange, while Huntington rose 13 cents, or 3.1 percent, to $4.28 on the Nasdaq.

(Reporting by Jonathan Stempel; Editing by Lisa Von Ahn)