You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: Joining me for the call are Don Kimble, our chief financial officer; and Mark Midkiff, our chief risk officer.
I'm now moving to Slide 3.
Our strong results for the quarter are attributable to resiliency and dedication of our team and their commitment to serving our clients, our strong balance sheet and our disciplined risk management practices.
Importantly and for the quarter, we generated positive operating leverage compared with the year-ago period.
Additionally, we reported a record level of pre-provision net revenue.
Revenue was up 17% from the prior quarter, also a record; reflecting double-digit growth in both loans and deposits as well as broad-based growth of our fee-based businesses, driven by strength in our capital markets businesses, cards and payments businesses and consumer mortgage.
Our consumer mortgage business demonstrated continued momentum with record second-quarter performance: originations of $2.2 billion were up 100% year over yeaR and consumer mortgage fee income of $62 million more than tripled from last year.
Our performance further demonstrated the success of our recent investments in residential mortgage.
Our pipeline is currently at record levels, and as such, we expect continued strong performance in the second half of 2020.
Expenses for this quarter reflected higher production-related incentives, costs related to our payments business, and COVID-19-related expenses, including steps that we continue to take to ensure the health and safety of our teammates.
We also supported our clients by offering payment deferrals, hardship support, borrower assistance programs, and forbearance options to help provide a bridge for individuals and businesses through these uncertain times.
Notably, we were very active in the Paycheck Protection Program.
We were the seventh overall lender in the program and processed over $8 billion in funding to support our clients.
Funding that saved hundreds of thousands of jobs.
Now turning to credit quality.
We have continued the benefit from our strong risk culture.
Our moderate risk profile informs all of our credit decisions.
Net charge-offs for the third quarter were 36 basis points.
In our deck, we have highlighted several commercial portfolios that continue to receive heightened monitoring in this environment.
Don will cover these focus areas in his comments.
These portfolios have generally been performing consistent with our expectations given the environment in which we are operating.
We also increased our loan loss reserve this quarter as our provision expenses significantly exceeded net charge-offs.
Our allowance to loan losses as a percentage of period-end loans now stands at 1.61% or 1.73%, excluding PPP loans.
Finally, we have maintained our strong capital position while continuing to return capital to our shareholders.
In the second quarter, our common equity Tier 1 ratio increased to 9.1%, which is within our targeted range of 9% to 9.5%.
Earlier this month, our Board of Directors declared a dividend of $0.185 per share for the third quarter, and that is consistent with our second-quarter level.
I will close by restating that Key had a strong quarter.
We remain confident both in our ability to achieve our financial targets and importantly, the long-term outlook for our company.
We have positioned the company to perform through various business cycles, including highly stressed periods like the one we are operating in today.
We will continue to support our clients and play a role to help revitalize our economy.
Key remains well capitalized, highly liquid, and committed to maintaining our moderate risk profile.
Most importantly, we remain committed to delivering value for all of our stakeholders.
I'm now on Slide 5.
As Chris said, we reported second-quarter net income from continuing operations of $0.16 per common share.
Notable this quarter was our provision expense that exceeded net charge-offs by $386 million or $0.34 per share.
Our results also reflected strong growth in our balance sheet with double-digit growth in both loans and deposits.
Fees were also a standout this quarter with strong results in a number of areas, including investment banking, cards and payments, and consumer mortgage.
Turning to Slide 6, total average loans were $108 billion, up 19% from the second quarter of last year, driven by growth in both commercial and consumer loans.
Commercial loans reflected an increase of over $8 billion in PPP balances or $6 billion on an average basis.
Consumer loans benefited from the continued growth from Laurel Road and, as Chris mentioned, strong performance from residential mortgage business.
Laurel Road originated $700 million of student consolidation loans this quarter, and we generated $2.2 billion from residential mortgage loans.
The investments we have made in these areas continue to drive results and, importantly, add high-quality loans to our portfolio.
Linked-quarter average loan balances were up 12%.
Importantly, we have remained disciplined with our credit underwriting and then walked away from business that does not meet our moderate risk profile.
We remain committed to performing well through the business cycle, and we managed our credit quality with this longer-term perspective.
Continuing on the Slide 7.
Average deposits totaled $128 billion for the second quarter of 2020, up $18 billion or 17%, compared to the year-ago period, and up 16% from the prior quarter.
The linked-quarter increase reflects broad-based commercial growth as well as growth from consumer stimulus payments and lower consumer spending.
This growth was offset by a decline in time deposits primarily related to lower interest rates.
Growth from the prior year was driven by both consumer and commercial clients.
Total interest-bearing deposit costs came down 39 basis points from the prior quarter, reflecting the impact of lower interest rates and the associated lag in pricing.
We would expect deposit costs to continue to decline approximately 15 basis points in the third quarter.
We continue to have strong, stable core deposit base with consumer deposits accounting for over 60% of our total deposit mix.
Turning to Slide 8.
taxable equivalent net interest income was $1.025 billion for the second quarter of 2020, compared to $989 million in both the year ago and prior quarter.
Our net interest margin was 2.76% for the second quarter of 2020, compared with 3.06% in the same period a year -- last year, and 3.01% from the prior quarter.
Both net interest income and net interest margin were meaningfully impacted by the significant growth in our balance sheet in the second quarter of 2020 due to the impact of government stimulus programs.
The larger balance sheet benefited net interest income but reduced the net interest margin due to lower yields on the Paycheck Protection Program loans and significant increase in liquidity, driven by strong deposit inflows.
Compared to the prior quarter, net interest income increased $36 million, driven by higher earning asset balances, partially offset by a lower net interest margin.
The net interest margin was impacted by lower interest rates and a change in the balance sheet, including elevated levels of liquidity and, as I mentioned, our participation in the PPP program.
Liquidity levels negatively impacted the margin by 12 basis points.
Lower interest rates caused seven basis points of pressure, and PPP and other combined for six basis points of reduced net interest margin.
Moving to Slide 9, our fee-based businesses had a very strong quarter.
Noninterest income was $692 million for the second quarter of 2020, compared to $622 million for the year-ago period and $477 million in the first quarter.
Compared to the year-ago period, noninterest income increased $70 million.
The primary driver was an increase of $47 million in consumer mortgage business with a record level of loan originations and related fees in the second quarter of 2020.
Cards and payments income also increased $18 million related to prepaid card activity from state government support programs, and operating lease expense increased $16 million, driven by gains from leveraged leases.
Service charges on deposit accounts declined $15 million from the year-ago period, reflecting lower activity levels and a larger number of fee waivers.
Compared to the first quarter of 2020, noninterest income increased by $215 million.
The largest driver was -- of the quarterly increase was an improvement in other income, primarily driven by $92 million of market-related valuation adjustments in the first quarter of 2020.
Other significant drivers of the quarter-over-quarter increase included the record consumer mortgage quarter and leveraged lease gains that I had already discussed as well as a $40 million increase in investment banking and debt placement fees, driven by strong commercial mortgage and debt capital markets activity.
I'm now turning to Slide 10.
Total noninterest expense for the quarter was $1.013 billion, compared to $1.019 billion last year and $931 million in the prior quarter.
The year-ago quarter included $52 million of notable items, primarily personnel-related costs associated with our efficiency initiatives.
Excluding these, expenses were up $46 million from the year-ago period.
The increase is primarily related to two main drivers, $25 million of payments-related expenses incurred in the current quarter as well as $13 million of COVID-19-related costs due to steps that the company has taken to ensure the health and safety of our teammates.
Compared to the prior quarter, noninterest expense increased $82 million.
The increase was largely due to higher incentive and stock-based compensation from strong revenue productions in our investment banking and consumer mortgage businesses.
Other drivers of the linked-quarter increase included $25 million of payments related to cost and other COVID-19-related expenses.
Moving now to Slide 11.
As I mentioned earlier, the largest impact to our results this quarter is the build in our reserves.
Our provision for credit losses exceeded net charge-offs by $386 million or $0.34 per share.
Overall, credit quality trends this quarter remained very solid.
Net charge-offs were $96 million or 36 basis points of average total loans.
Nonperforming loans were $760 million this quarter or 72 basis points of period-end loans, compared to $632 million or 61 basis points in the prior quarter.
Additionally, delinquencies remained relatively stable, with less than a 1% increase in our 30- to 89-day past dues and the 90-day plus category declining quarter over quarter.
We've also continued to monitor the level of assistance requests that we received from our customers.
Over the past quarter, the percent of loan forbearance has not changed materially.
As of June 30th, loans subject to forbearance terms were around 2% based on a number of accounts for both commercial and consumer loans, and about 4.5% when using outstanding balances.
Turning to Slide 12, we also updated a disclosure that we included in our first quarter 10-Q that highlights certain industries or customer groups that are receiving greater focus in the environment.
These portfolios represent a small percentage of our total loan balances.
Importantly, as Chris mentioned, as a group, they continue to perform consistent with our expectations.
Each relationship in these focus areas continues to be subject to active reviews and enhanced monitoring.
The outstanding balances shown are as of June 30 and reflect some of the draw activity that occurred late in the quarter.
Now on to Slide 13, we continue to maintain a strong level of capital.
This quarter, our common equity Tier 1 ratio increased from 8.9% to 9.1%, which places us back in the targeted range of 9% to 9.5%.
We believe that operating within our targeted range will provide us sufficient capacity to continue to support our customers and their borrowing needs and, over time, return capital to our shareholders.
As Chris mentioned earlier this month, our Board of Directors approved a third quarter common dividend of $0.185 per share, which was consistent with our second-quarter dividend level.
On Slide 14, we provided our best insights for the third quarter, recognizing that we're still moving through some unchartered territory.
We expect average loans to be relatively stable, reflecting a reduction in commercial line draws and more modest growth in the consumer portfolio.
Average deposits are expected to remain relatively stable in the third quarter.
Our outlook for net interest income would be for a low single-digit increase, reflecting a relatively stable balance sheet and modest improvement in net interest margin.
Noninterest income in the third quarter will likely include a step-down from the record consumer mortgage fees we saw in this quarter and lower gains from operating leases.
Overall, I would expect a high single-digit linked-quarter decline in noninterest income.
Noninterest expenses are expected to be down low single digits but are highly dependent on production and on some related incentive compensation, ongoing cost to support our payments business and COVID-related expenses.
Net charge-offs are expected to be in the 50 to 60-basis-point range.
This environment continues to change rapidly, which can impact the outlook and comments we've provided.
Finally, shown at the bottom of the slide are our long-term targets.
Given the economic downturn, we would not expect to achieve our targets this year.
However, as we emerge from the current crisis, and we expect to be back on the path that would lead us to operate within these target ranges.
Importantly, we have not wavered from our commitment to achieve our long-term targets.

user
compname reports q2 2020 net income of $159 mln, or $.16 per diluted common share.
compname reports second quarter 2020 net income of $159 million, or $0.16 per diluted common share.
qtrly results reflect provision for credit losses of $482 million, which exceeded net charge-offs by $386 million, or $0.34 per share.
net loan charge-offs for q2 of 2020 totaled $96 million, or 0.36% of average total loans.
qtrly total revenue $1.72 billion versus $1.61 billion.

assistant