Operator: Good day, ladies and gentlemen, and welcome to the People's United Financial Incorporated Second Quarter Earnings Conference Call. My name is Eric. I will be your audio coordinator for today. At this time, all participants are in a listen-only mode. Following the prepared remarks, there will be a question-and answer-session. (Operator Instructions). As a reminder, the conference is being recorded for replay purposes.
I would now like to turn the presentation over to Mr. Peter Goulding, Vice President of Investor Relations for People's United Financial. Please proceed, sir.
Peter Goulding - VP of IR: Good morning, and thank you for joining us for today's call. Jack Barnes, Interim President and Chief Executive Officer; Paul Burner, our Chief Financial Officer; and other members of our management team are gathered for the call.
Before we get started, please remember to refer to our forward-looking statements on slide one of our presentation, which is posted on our website, www.peoples.com, under Investor Relations.
With that, I will turn the call over to Jack.
John P. (Jack) Barnes - SEVP, CAO and Interim CEO: Thank you, Peter. Good morning again, and welcome to the People's United Financial second quarter 2010 earnings conference call. As you can see on slide two, this call has a dual purpose, both to outline our second quarter 2010 results and to provide detail on our two acquisitions announced yesterday.
On slide three, we provide an overview of our second quarter results. Operating net income for the quarter was $31.8 million or $0.09 per share, excluding $23.2 million pre-tax or $0.05 per share of one-time costs related to the former CEO's separation agreement, merger-related and systems conversion costs.
The quarter's results reflect continued growth in our core loan portfolios and deposits despite continued economic challenges. The margin increased to 3.68%, compared to 3.47% in the first quarter, primarily due to the full quarter benefit of the Financial Federal acquisition.
Net charge-off increased to $17.8 million or 46 basis points from 26 basis points in the prior quarter. Both non-interest income and non-interest expense are higher primarily as a result of the acquisition of Financial Federal and Butler Bank.
On slide four, during the second quarter, we made significant progress in our systems conversion project. In fact, this weekend, we will complete our core systems conversion, including our customers in Vermont, New Hampshire, Massachusetts and Maine markets. At the same time, we will be re-branding our branches in those markets to People's United Bank. We're pleased to have reached this milestone, which will provide instant recognition of the People's United brand from Maine to New York.
Additionally, we continue to focus on organic growth with two new locations expected to be opened in downtown Boston before year end. These branches will provide an important extension of our growing footprint in the Greater Boston area.
During the second quarter, we repurchased $52 million of our common stock equal to 3.7 million shares at an average price of $13.98. The repurchase program was affected through open market purchases. We will continue to evaluate the returns available to us via share repurchases relative to the rest of our capital deployment opportunities.