KeyCorp announced first quarter net income from continuing operations attributable to Key common shareholders was $199 million compared to $184 million for the first quarter of 2011.

During the first quarter of 2012, Key said the company continued to benefit from improved asset quality. Nonperforming loans decreased by $219 million and nonperforming assets declined by $322 million from the year-ago quarter to $666 million and $767 million, respectively. Net charge-offs declined to $101 million, or .82% of average loan balances for the first quarter of 2012, compared to $193 million, or 1.59% of average loan balances for the same period one year ago.

“Key’s first quarter results demonstrate continued positive momentum as we execute on our relationship strategy, strengthen our balance sheet and maintain disciplined expense control,” said chairman and chief executive officer Beth Mooney. “Asset quality improved again this quarter, and we were pleased to see growth in our commercial, financial and agricultural loan portfolio. Key remains committed to meeting the credit needs of its customers and communities.”

Key said it originated approximately $8.3 billion in new or renewed lending commitments to consumers and businesses during the first quarter of 2012, which is up from $6.9 billion for the same period one year ago.

Key noted that its equipment finance business net income in the first quarter was $18 million, down from $23 million a year earlier as non-interest expense was up 23%. Net loan charge-offs to average loans dropped from .88% to .42% in the first quarter 2012 as net charge-offs were down from $10 million in 2011 to $5 million in the most recent period. Provision charges in the first quarter of $2 million were down from $26 million in 2011. Non-performing assets at period end were $28 million versus $44 million a year earlier. Return on average allocated equity was 26.71% compared to 27.04% in 2011. Key said average full time equivalent employee counts dropped from 521 in the first quarter last year to 469 in the first quarter 2012.

To read the full KeyCorp news release click here.