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: Gary will discuss asset quality and provide further detail on our loan portfolios.
Vince will address our financial results and cover relevant trend.
I will then provide an update on our digital platforms and physical operation and, finally, discuss our organization's $250 million commitment and continuing initiative to address economic and social inequity in our community.
As a company, and on a personal level, we've endured significant challenges and change this year.
Our thoughts are with those who have been impacted by the pandemic and unrest in our community.
I am proud of how our company has rallied in support of our customers and neighborhoods where we operate.
The resolve to work together to emerging stronger and united in our demand for a more successful future for all of our constituents.
F.N.B. second quarter results increased significantly.
Operating earnings per share increased 53% to $0.26, which included an additional $17 million or $0.04 per share of COVID-19 reserve bill in the quarter.
PPNR increased to $130 million.
Core revenue trends remained solid throughout a challenging interest rate environment with total revenues increasing 6% annualized to $306 million.
And total assets growing nearly $3 billion to end June at $38 billion.
Compared to the first quarter, loans and deposits increased $2.3 billion and $3.6 billion or 10% and 15% respectively.
On a linked quarter basis, double-digit second quarter loan and deposit growth were supported by organic commercial production and originating nearly 20,000 PPP loans totaling $2.6 billion.
Our fee-based businesses performed exceptionally well with capital markets and mortgage banking establishing revenue records of $13 million and $17 million respectively.
Our efficiency ratio was 53.7% and operating expenses were well controlled, down 3% from the first quarter.
Even though there has been disruption across our footprint due to COVID-19, we've still seen good commercial loan origination activity across most of the footprint.
This is a testament to our team to continue to serve our clients and meet their borrowing needs, while dealing with the challenging operating environment.
The strength in our balance sheet and ample liquidity enabled F.N.B. to support our clients' capital needs.
We continue to apply our consistent underwriting standards aligned with our strategy and overall risk profile as we evaluate business opportunities in the current climate.
On a linked quarter basis, total average loans increased 9%, largely driven by growth in commercial loans of 14%.
Commercial line balances when compared to historical levels contracted as we saw much lower line utilization of 36%.
The utilization rate decreased as PPP funds were utilized to support working capital needs by many existing clients and economic activity declined during the period.
Commercial loan balances were also impacted by large corporate borrowers paying down bank credit facilities with increased liquidity in the bond market.
Average deposits increased 11% as we had solid organic growth in customer relationships.
The large inflow of deposits for PPP funding in government stimulus activities also occur.
As part of our business strategy, we have been focused on reducing the level of wholesale borrowings by continuing to gain depositors and expand existing relationships.
As a result, we were able to fully eliminate our overnight borrowing position, replacing it with customer deposit.
Non-interest bearing deposits were up $2.1 billion or 33% from the prior quarter-end.
Looking at June 30 spot balances, our loan to deposit ratio was 92%, including the funded PPP loans.
which positions us more favorably in the current rate environment.
Growing non-interest-bearing deposits has been integral -- has been an integral part of our long-term strategy, and we've consistently been able to grow organically through various interest rate environment, further strengthening our overall funding mix.
In fact, transaction deposits have increased $4 billion or 20% from March 31 and now represent 85% of total deposits, which compares very favorably to 79% five years ago.
With the Fed taking near-term rate increases off the table, there is opportunity to offset net interest income headwind by continuing to reduce deposit costs.
As we have stated previously, continuing to grow our fee-based businesses is essential to diversifying our revenue sources and to mitigate pressure on net interest income in an extended low rate environment.
With interest rate expectations now reflecting lower for longer, it is important we continue to build on our recent success in capital markets, mortgage banking, wealth management and insurance.
This quarter's record mortgage banking income of $17 million better reflects the fundamentals in the results without MSR impairment as the mortgage banking business set a new production record for the quarter of $869 million.
Turning to our participation in the Paycheck Protection Program.
I would first like to recognize our teams for their support of our customers and communities throughout these extraordinary circumstances.
Our employees have worked tirelessly to ensure businesses receive critical funding during a time when regions within our footprint experienced extended shut down, particularly in our metro markets in Pennsylvania and the Mid-Atlantic, and when many borrowers turned from larger banks to F.N.B. to accommodate their needs.
As part of the PPP origination process, each borrower opened an F.N.B. account, which supports our efforts to bring in new households.
Looking ahead, we are optimistic that borrowers will be able to deploy these funds in businesses around the footprint we open.
As an organization, we leveraged our technology infrastructure and expertise already in place to quickly adapt and accommodate our customers in a challenging remote environment.
Coupled with significant financial aid and employee volunteerism in our communities, our efforts have helped tens of thousands of small businesses during the pandemic, and supported the retention of hundreds of thousands of jobs.
From the beginning of the COVID-19 crisis, F.N.B. has upheld consistent volumes of total transactions -- deposit transactions by providing customers with a seamless transition from physical to online and mobile engagement.
This was made possible from the significant investment we've committed to digital -- our digital and online platforms over the last decade.
In fact, the appointment setting feature on our new website that went live in January enabled F.N.B. to continue serving clients safely in our branches throughout the crisis.
We grew from 26 monthly appointments in January to 2,700 appointments in April.
the rapid shift to remote services accelerated the enhancements to our digital strategy, and we're already under way, and minimized disruption for our customers.
But the operating environment remains in a constant state of change, we will continue our innovative approach to better serve our customers.
I will now share some updates regarding our operations and delivery teams.
Together with the uptick in online appointment setting, our websites increased -- our website increased traffic by millions of daily visitors.
As we are deepening relationships with customers throughout our digital capabilities, we are also generating significant opportunities.
By synchronizing physical and digital customer experience, we can take customers to utilize a single product and broaden the relationship to improve products such as savings, credit card, private banking, mortgage, wealth management and insurance.
At the end of the day, it provides tremendous value to the customer to have multiple product relationships within F.N.B. on a single platform connected through digital capabilities.
Overall, the acceleration of digital and remote banking volume demonstrates our versatile and integrated multi-channel strategy.
Customers have been more active in F.N.B.'s mobile and online channels with monthly average users up by 50,000 in both categories compared to the average for 2019.
While our customer adoption rates for online and mobile have accelerated, our customers have still expressed the strong desire to conduct business within our branches.
As an essential business, it is important for F.N.B. to remain available and accessible.
Our business continuity team in collaboration other units, including data science, human resources and retail banking, developed a monitoring system in which we can evaluate data related to the healthcare prices on a locational basis.
On July 13th, 2020, we reopened the majority of our branch lobbies customers adhering to the most stringent safety measures, including social distancing and cleaning protocols as we begin to move forward to the next phase of operation.
During the second quarter, our credit portfolio continued to perform in a satisfactory manner as the COVID-19 global pandemic continues to evolve.
Our credit metrics have held ground in this challenging economic environment, which I will cover with you in greater detail on both a GAAP as well as a non-GAAP basis, exclusive of our loan volume funded under the PPP program.
I'll also provide some updates on the status of our loan deferrals and the steps we are taking to manage our book, particularly those borrowers tied to COVID-sensitive industries.
Let's now review the quarterly results.
The level of delinquency ended the second quarter at 92 basis points on a GAAP basis, down 21 bps over the prior quarter as early stage delinquencies returns to more normalized levels.
On excluding PPP loan volume, level of delinquency would have ended the quarter at 1.02%, down 11 bps from the prior quarter.
Level of NPLs and OREO totaled 72 basis points at June, an 8 basis point increase linked quarter, while the non-GAAP level was 80 bps, excluding PPP.
The migration was due primarily to a few previously rated credits that were further impacted by the current COVID environment that we've proactively moved to non-accrual during the quarter.
Of our total NPLs at June, 48% of these borrowers continue to pay as agreed and are current.
Net charge-offs remained at a good level at $8.5 million for the quarter or 13 basis points annualized, resulting in a year-to-date level of 12 basis points.
Provision expense totaled $30 million in the quarter, which includes additional build for macroeconomic conditions tied to COVID-19.
Inclusive of the Q1 economic-driven build, our COVID-related provision for the first half of the year totaled $55 million.
Our ending reserve stands at 1.4% and, excluding PPP volume, the non-GAAP ending ACO totals 1.54%, representing a 10 basis point increase over the prior quarter, resulting in NPL coverage of 215%.
When including the acquired unamortized loan discounts, our coverage, excluding PPP volume, is 1.87%.
Under the preliminary severely adverse DFAST scenario, the current reserve position, inclusive of unamortized loan discounts, would cover 78% of stressed loss.
As the pandemic continues to pressure the global economy, our approach to managing the book in this COVID environment remains in line with what I communicated on last quarter's call.
We continue to conduct thorough borrower level reviews within our commercial book to attract key performance indicators.
For those that operate in economically sensitive industries or that have otherwise been impacted by the pandemic.
These ongoing targeted portfolio reviews allows our credit teams to quickly identify and proactively address emerging risks at the borrower, industry or overall portfolio level.
Additionally, we continue to conduct a series of scenario analysis and stress test models under our existing allowance and DFAST frameworks as we work through this challenging environment.
As it relates to our borrowers requesting payment deferral, 10% of our loan portfolio, excluding PPP loans, were approved during the initial deferment request window.
Of these deferments, 98.4% were current and in good standing prior to the pandemic.
Of the remaining 39 million, 12 million is already on non-accrual.
Our request for initial deferrals are essentially non-existent, and we have only seen a small amount of second request for payment deferral at this time.
That said, we are carefully monitoring our credit portfolio and remain vigilant to identify borrowers that could face further pressure during uncertain economic conditions.
This approach allows us to quickly identify and manage risk in the portfolio, while still meeting the credit needs of our customers.
The composition of the portfolio remains diverse and well balanced across several product lines, geographies and industries.
As shown on Slide 10, our exposure at the highly sensitive industries remains low at 3.8% of the total portfolio, which includes all borrowers operating in the travel and leisure, food services and energy space.
And the level of payment deferrals granted to these borrowers remains at 38%.
Additionally, we have been tracking our retail-secured IRE portfolio closely to assess the emerging challenges on this asset class, as well as the nature of the tenants' operations and insulation from certain economic strain as essential businesses.
Our weighted average LTV position in this book remains strong at 65%.
In summary, we continue to manage our credit portfolio through this difficult economic environment by drawing on our strong credit fundamentals and our risk management strategies, which we continue to enhance as the COVID situation plays out.
Considering these challenges, our portfolio is in a satisfactory position entering the second half of the year.
Realizing the uncertainty of the economic environment as we look ahead, we continue to draw on the strength of our experienced banking teams to manage through this environment as we move into the latter half of the year.
I would like to recognize our teams for their tireless efforts as we continue to work through this challenging environment.
Today I will review the second quarter results and trends in our operating environment, and then discuss our capital management approach and current position.
I'll note that our tangible common equity levels entered the year at strongest position we've had in nearly two decades, and we are comfortable with our current capital position.
Looking at Slide 5, GAAP earnings per share for the second quarter is $0.25, excluding $0.05 related to significant or outsized items.
This included $17.1 million of COVID-19 reserve build and $2 million of COVID-19-related expenses.
The TCE ratio ended June at 6.97%, reflecting these items as well as a 52-basis-point temporary impact for the $2.5 billion in net PPP loan balances at June 30th.
Without the PPP balances, the TCE ratio would have been 7.49%.
Additionally, our CET1 estimate ended the quarter at 9.4% compared to 9.1% at March 31st and 9.4% at the end of 2019, as PPP loans carry a 0% risk weighting for risk-based capital purposes.
Pretax pre-provision earnings increased to $130 million, providing more than adequate earnings power as we declared our third quarter dividend of $0.12 earlier this week.
With a dividend payout ratio of 48% in the second quarter, they're well below historical levels of previous payout ratios.
I'll touch on our capital management approach in more detail later on my comments.
Turning to the balance sheet on Slide 14, the key theme is the impact of $2.5 billion in net PPP loan, as high as [Phonetic] 9.5% of total loans and leases at June 30th.
PPP was the primary driver in the linked-quarter average increase of $2.1 billion or 9% as well as strong organic activity across most of the commercial footprint.
Our commercial line utilization ended June at 36%, below historical levels, and down from the mid-40%s spot utilization rate at the end of the first quarter as we clearly saw some customer borrowing activity shift over to the PPP and our large corporate borrowers access to capital markets to reduce their bank debt.
Average consumer loans were essentially flat with direct installment loans increased $65 million from 14% annualized and residential mortgage increased 6% annualized, two bright spots to continue to perform well.
The increases in direct installment mortgage loans were offset by continued declines in indirect auto loans and consumer lines, two loan classes heavily affected by the pandemic.
Continuing down to Slide 14, average deposit increased to $2.7 billion or 11% on a linked quarter basis, led by $2.9 billion or 15% of transaction deposit growth.
Transaction deposits equaled 85% of total deposits.
As our managed decline in CDs continued, transaction deposit balance has benefited from stimulus programs and PPP customer-driven inflows.
Non-interest-bearing, interest-bearing demand, and savings account balances each increased significantly, up $1.8 billion, $854 million, $226 million respectively.
Now focusing on the income statement on Slide 15.
Compared to the first quarter, net interest income totaled $228 million, a decrease of $4.7 million or 2% as loan and deposit growth mostly offset the impact from lower rates.
The net interest margin narrowed 26 basis points to 2.88%, primarily driven by a full quarter impact from March action, the lower the target Fed fund range to zero to 25 basis points.
Additionally, average one-month LIBOR fell to 36 basis points from 141 in the prior quarter.
Total yield on average earning assets declined 58 basis points to 3.54%, reflecting lower yield on variable and adjustable rate loans due to the lower interest rate environment and the impact of the PPP balances.
Total cost of funds decreased to 67 basis points from 101 basis points as cost on interest-bearing deposits were reduced 37 basis points.
Slide 16 and 17 provide details for non-interest income and expense compared to the first quarter.
Non-interest income totaled $77.6 million, increasing $9.1 million or 13.3% as mortgage banking operations increased $17.6 million on a reported basis or $10.2 million excluding MSR impairments of $300,000 and $7.7 million respectively.
Mortgage production established a new quarterly record at $869 million, increasing $306 million or 55% from the prior quarter with large contributions from North Carolina and the Mid-Atlantic region.
Capital markets also set a new record of $12.5 million, increasing $1.4 million or 12.6% with strong contributions from interest rate derivative activity across the footprint.
As expected, service charges decreased $6.2 million or 20.5% due to noticeably lower transaction volumes in the COVID-19 environment.
Turning to Slide 17, non-interest expense totaled $175.9 million, a decrease of $19 million or 9.7%, including $2 million of expenses associated with COVID-19 in second quarter 2020, $15.9 million of outsized, unusual or significant expenses occurring in the first quarter.
On an operating basis, expenses declined $5.1 million or 2.9% compared to the first quarter of 2020 as we have realized lower variable expenses such as travel and business development and increased FAS 91 benefits, given the amount of loans originated in the second quarter.
Additionally, we recognized an impairment of $4.1 million from a second quarter renewable energy investment tax credit transaction.
The related tax credits were recognized during the quarter as a benefit to income tax.
The efficiency ratio improved significantly 53.7% compared to 59%.
Turning to recent trends on Slide 18, we continue to observe daily changes in external factors, including multiple aspects of potential economic recovery, changes in government programs and regulation changes over current programs.
Saying that, we are providing our current directional outlook for the third quarter based on what we know today, which is subject to change, as we all know.
We expect period end loans to increase low-single-digits from June 30th, assuming no forgiveness of PPP loans, given the SBA's current expected time for processing forgiveness applications.
While we expect deposits to decline from the second quarter 2020 levels based on an expectation that customers increase the deployment of funds received through the government programs, we do expect to see continued organic growth in transaction deposits.
We expect third quarter net interest income to reflect the full impact of lower one-month LIBOR rates and variable rate loans, partially offset by a full quarter benefit of higher commercial loan balances, continued reductions in the cost of interest bearing deposits.
We expect positive trends in capital markets and mortgage banking, although lower than the record levels this quarter.
We expect service charges to increase and recent transaction volume trends continue.
We expect expenses to be stable, up slightly from the second quarter.
Lastly, we expect the effective tax rate to be around 17% for the full-year 2020.
For the remainder of my comments, I would like to discuss our risk-based capital position and overall management philosophy, given the current environment beginning on Slide 20.
We continue to be very comfortable with our capital ratios as they stand today with the benefit of entering this crisis from a position of strength.
As demonstrated in the new capital slides we have added to the deck, we have ample internal capital generation cushions for all of our capital ratios in relation to well-capitalized thresholds.
For example, for the total risk-based capital ratio fall below 11%, total capital would have to drop by $258 million, 7.9% of total capital of $3.3 billion.
Our risk-weighted assets will have to increase by $2.3 billion, which is 8.5% of total risk-weighted assets of $27.5 billion.
I could comment also that $258 million is in after-tax dollars.
On top of our capital position, we have a conservative bias in how we build reserves, especially given the consistent underwriting philosophy that's been in place for well over a decade.
With CET1 of $2.6 billion and an allowance for credit losses of $365 million and a remaining PCD discount of $77 million, we have a substantial base available to absorb credit losses.
To put that in context, our reserves plus remaining discount on previously acquired loans would cover 62 quarters of net charge-offs that averaged $7.1 million per quarter in the first half 2020.
This is before considering the $2.6 billion in CET1.
Another way to look at this is relative to severely adverse charge-offs in our last stress test.
Again, using $442 million in reserves plus remaining discount, we covered 75% of $586 million in charge-offs projected under the severely adverse scenario for a nine-quarter period.
If we put the $586 million in context, that compares to $64 million over nine quarters using the first half of 2020 net charge-offs or 9.2 times the current levels.
As far as dividend sustainability, we are governed by the Federal Reserve and the OCC.
From a Fed perspective, we currently pay out $39 million in common dividends and $2 million in deferred dividend for a total of $41 million per quarter.
The Fed fourth quarter test currently shows in excess of $153 million after paying out the third quarter dividend just declared.
From an OCC perspective, there are significant cushions to support the $46 million the bank is projected to pay up to the holding company.
Three-part [Phonetic] test shows a cushion of $913 million relative to net divided [Phonetic] profits, $517 million relative to net profits for the current year combined with retained net profits for the prior two years, cushions are both well-capitalized levels ranging from 228 basis points to 384 basis points.
In addition to looking at our capital position, it's important to consider PPNR generation.
Year-to-date PPNR of $236 million more than supports the incremental reserve build through the first six months of the year.
We generated ample capital to cover the preferred and common dividend, and our CET1 ratio was consistent with where we ended 2019 at 9.4%.
Earlier this week, we announced our third quarter dividend of $0.12.
Given the earnings level through the first half of 2020, you can see there is capacity to continue the return capital to shareholders.
Overall, our capital management philosophy is grounded in a conservative and consistent underwriting and credit management philosophy throughout varying economic cycles, supplemented with robust and comprehensive enterprise risk management, including very active credit monitoring processes.
Looking at everything we've managed through over the last few months, the efforts of our team has been nothing short of exceptional, through assisting our clients and communities in which we serve.
Recent events highlighting persistent inequities in our country have affirmed our important mandate to support those who are vulnerable and traditionally underserved.
As an organization, we continue to place a strong emphasis on being inclusive and demonstrated by our recent $250 million commitment to address economic and social inequity and low and moderate income and predominantly minority communities.
As we continue to deploy these investments, our shareholders will benefit as we have continued to prudently manage risk, liquidity and capital action to better position our company.
During the quarter, F.N.B. originated nearly $500 million in Paycheck Protection Program loan in low to moderate income in rural neighborhoods, assisting thousands of small businesses and employees.
Our success is a direct result of our banker's proactive outreach to over 100 organizations and non-profit entities that work directly with these communities.
This is just an example of how committing our resources this way leads to good business results.
As we look ahead to move into the next phase of COVID-19 recovery, we will continue to focus our response on four key pillars to meet the needs of each of our constituent.
The pillars are employee protection and assistance, operational response and preparedness, customer and community support, and risk management and actions taken to preserve shareholder value given the extreme challenges presented.
Due to these unprecedented conditions, our employees have consistently delivered superior experience for our customers.
In June, F.N.B. was ranked among the best banks in Ohio and North Carolina by Forbes and AdvisoryHQ respectively, a testament to the consistency of our customer-centric culture across our footprint.
The company was again named the Top Workplace in Northeastern Ohio for the sixth consecutive year by the Cleveland Plain Dealer.
This recognition, which is based solely on employee feedback, joined the list of nearly 30 such awards received over the past decade.
All of this has been made possible by our dedicated employees.
Our dedication to cultivating a superior culture directly translates into a better customer experience, greater financial performance and higher returns for our shareholders.

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compname reports second quarter 2020 earnings per share of $0.25.
compname reports second quarter 2020 earnings per share of $0.25, a 79% increase from prior quarter.
q2 earnings per share $0.25.
q2 operating earnings per share $0.26.

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