Net income for common shareholders from continuing operations at KeyCorp (NYSE: KEY) totaled $193 million, or 21 cents a share, in the fourth quarter.

That’s down from $201 million, or 21 cents a share, in the fourth quarter of 2011. The Cleveland, Ohio–based banking company took a $16 million charge during the quarter related to its latest cost-cutting effort.

For the full year in 2012, net income from continuing operations attributable to common shareholders was $827 million, or 88 cents a share, down from $857 million, or 92 cents a share, in 2011.

Last year was a strong one for the bank, but it wasn’t enough, KeyCorp Chairwoman and CEO Beth Mooney said during a Jan. 24 conference call to discuss Key’s latest results.

“We are focused on sustaining our positive momentum and continuing to drive our performance in 2013 and beyond,” she said. “I am confident that our strategies are working and that we are on the right path forward.”

Key’s stock price rose 9.5 percent in 2012, compared to the approximately 16 percent increase in the Dow Jones U.S. Select Regional Banks Index. But year to date through Jan. 28, Key’s shares had already risen 9.3 percent, compared to the 6 percent gain for the index.

KeyBank has more than 1,000 branches in 14 states and assets of more than $89 billion.

Key is the number two bank in the Syracuse–metro area deposit market with 27 branches, more than $1.8 billion in deposits, and a market share of 16.8 percent, according to the latest statistics from the Federal Deposit Insurance Corp. The bank has two offices, more than $58 million in deposits, and a market share of 1.58 percent in the Utica–Rome area.

Loan growth was a highlight for KeyBank in 2012, with commercial and industrial lending leading the way, Senior Executive Vice President and CFO Jeffrey Weeden said during the conference call. Commercial and industrial loans rose 21 percent in 2012.

The bank has had success expanding lending with new and existing clients in some focused industry segments, Weeden said. Key expects average loan balances to increase in the mid- to upper single digits this year.

Commercial lending will likely drive the increase again as the bank focuses on sectors where it can deliver a full range of products, services, and advice to clients, Weeden said.

Consumer loans also rose in 2012, aided by a credit card portfolio Key acquired during the third quarter, he added. Overall, average total loan balances increased 6.6 percent to more than $51.8 billion in 2012.

Cost cutting will be a continuing focus for Key in 2013, Mooney said. The bank began a broad initiative to reduce expenses last year.

Key closed 19 underperforming branches in 2012 and is on track to shutter another 40 to 50 this year, Mooney say. Locally, Key closed a branch in Syracuse (and shuttered one in Dannemora in Clinton County), but also opened a new office in Manlius.

Key is aiming to save $150 million to $200 million in annual expenses by the end of this year. The bank’s moves in 2012 trimmed $60 million in annual costs, Mooney said.

Contact Tampone at ktampone@cnybj.com

OSWEGO — Pathfinder Bancorp, Inc., holding company for Pathfinder Bank, earned $729,000 in the fourth quarter, up more than 67 percent from a year earlier.

Earnings per share for the period totaled 25 cents a share for the period, up from 10 cents a share in the fourth quarter of 2011. The rise in profit resulted mainly from increases in net interest income and gains on sales of securities, loans, and foreclosed real estate, according to the bank.

For the full year in 2012, Pathfinder earned $2.6 million, or 87 cents a share, up from $2.3 million, or 52 cents a share, in 2011.

“Quality, organic loan growth has allowed us to continue favorable and forward earnings trends despite the strong headwinds of compressed net interest spreads brought on by excessive monetary policy intervention in the national economy,” Pathfinder President and CEO Thomas Schneider said in the earnings report. “Annual earnings of $2.6 million represent a record level for the company.

“Loan growth of $29 million, or 9.5 percent, while maintaining stable and strong asset quality, has been and will continue to be the key driver of sustainable earnings during this tepid economic recovery. We are confident in our market position to continue our favorable trends.”

Oswego–based Pathfinder (NASDAQ: PBHC) has total assets of $477.8 million and eight branches in Oswego and Onondaga counties.

Contact Tampone at ktampone@cnybj.com