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

KeyCorp's net income for the fourth quarter of 2011 fell 31.1 percent, due to a charge stemming from a litigation escrow deposit.

On Tuesday, the Cleveland-based parent of KeyBank N.A. reported net income of $201 million, or 21 cents per share, for the period ending Dec. 31, 2011. A year ago, the financial institution reported net income of $292 million, or 33 cents per share.

Results included a $24 million charge related to VISA's late fourth-quarter announcement of a planned litigation escrow deposit, plus a $28 million gain on the sale of Tuition Management Systems, an education lending business.

Key's noninterest income also fell during the fourth quarter, from $526 million a year ago to $414 million at the end of December, representing a 21.2 percent decline. Nonperforming loans decreased from $842 million to $727 million, while nonperforming assets dropped from $950 million to $859 million.

Net income for all of 2011 totaled $857 million, or 32 cents per share, the bank said. That's more than double 2010 net income of $413 million, or 47 cents per share.

KeyBank is expanding its presence in Western New York. It plans to acquire 27 HSBC Bank USA N.A. branches from First Niagara Financial Group Inc. for $110 million.

The branches are located in the Greater Buffalo and Rochester markets. The deal is expected to close by the end of the second quarter of 2012.