By ALLISSA KLINE
akline@bizjournals.com | 716-541-1612

Net income earnings at KeyCorp totaled $292 million, or 33 cents per share, for the fourth quarter ending Dec. 31, 2010.

The same quarter last year yielded a net loss of $258 million, or 30 cents per share.

The Cleveland-headquartered parent of KeyBank N.A., the fourth-largest bank in Western New York, said the turnaround stems from improved pre-provision net revenue and lower credit costs.

Net income for the year 2010 totaled $413 million, or 47 cents per share, compared with a net income loss of 1.58 billion, or $2.27 per share, for all of 2009.

"With three consecutive profitable quarters and continued signs of increased economic activity on the part of our clients, Key has clearly turned the corner and is positioned well to compete in 2011," KeyCorp chairman and CEO Henry Meyer III said in a release. "Our financial core measures - strong capital, enhanced liquidity, adequate loan loss reserves, as well as our exit from riskier lending categories - represent a firm foundation for profitability in the year ahead."

Improving credit quality of loan portfolios, according to the bank, was attributed to the company's positive capital position. As of Dec. 31, nonperforming assets totaled $1.3 billion and net loan charge-offs totaled $256 million, down from $708 million a year ago.

The company has yet to repay $2.5 billion it received in late 2008 from the federal government. Meyer said repayment of the TARP money is a "top priority" for the bank, but the delay has worked in the bank's favor in that it has allowed it to "demonstrate improved financial performance and an increased stock price."

Meyer is set to retire May 1. He will be succeeded by Beth Mooney.

Locally, KeyBank is planning to build a new branch in Amherst at the corner of Hopkins and West Klein roads.