KeyCorp announced first quarter net income from continuing operations attributable to Key common shareholders of $184 million compared to a net loss from continuing operations of $98 million for the first quarter of 2010.

The first quarter results included a $49 million “deemed dividend” to account for accelerated amortization on $2.5 billion in preferred shares held by the government through the TARP program, which the company redeemed on March 30.

Key said the first quarter 2011 results reflected an improvement in noninterest expense and lower credit costs from the same period one-year ago.

“Our first quarter results demonstrate continued improvement in asset quality and disciplined expense control, and underscore our successful emergence from the recession,” said chairman and chief executive officer Henry L. Meyer III. “Coupled with our successful capital actions during the quarter and TARP repayment, Key emerges in an excellent position to compete and grow under the leadership of CEO-elect Beth Mooney and her team.”

Key said its Key Equipment Finance unit net income in the first quarter was $24 million, up from $8 million in the same quarter last year. Net loan charge-offs were $10 million, down from $18 million a year earlier. Nonperforming assets at period end were $44 million, down from $111 million at the end of the first quarter 2010. Return on average allocated equity was 31.30%, up from 8.86% for the same period last year.

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