KeyCorp reported second-quarter earnings Thursday after eight consecutive quarters of losses.

Net income at the Cleveland-based bank totaled $29 million, or 3 cents per share, as of June 30. That's up from the same time last year when the bank reported a net loss of $390 million, or 68 cents per share.

"These results are encouraging and the return to profitability represents an important step forward for our company," Key CEO Henry Meyer III said in a release. "Continued improvement in credit quality across most of our businesses was the principal contributor to the quarterly performance."

Key cut its loan-loss provisions for the second quarter to $228 million, down from $823 million set aside during the second quarter of 2009. Net loan charge-offs totaled $435 million, down from $502 million last year.

Nonperforming assets declined from $2.5 billion a year ago to $2 billion as of June 30. The bank said the decline stems from nonperforming loans in the commercial real estate and commercial, financial and agricultural portfolios.

It originated approximately $7.6 billion in new or renewed loans to consumers and businesses during the quarter.

Key is the parent company of KeyBank, the fourth largest deposit-taker in Western New York.