Operator: Welcome to the First Republic Bank's Second Quarter 2013 Earnings Conference Call. During today's presentation, the lines will be in a listen-only mode. Following the presentation, the conference will be opened for questions.
I would now like to turn the call over to Dianne Snedaker, Executive Vice President and Chief Marketing Officer. Please go ahead.
Dianne Snedaker - EVP and Chief Marketing Officer: Thank you, and welcome to First Republic Bank's second quarter 2013 conference call. Speaking today will be Jim Herbert, the Bank's Chairman and Chief Executive Officer; Katherine August-deWilde, President and Chief Operating Officer; Mike Selfridge, Deputy Chief Operating Officer; and Willis Newton, Chief Financial Officer.
Before I hand the call over to Jim, please note that any forward-looking statements made during this call are made as of today, are based on management's current expectations and are subject to risks, uncertainties and assumptions. Potential risks and uncertainties that can cause the Bank's financial and business results to differ materially from these forward-looking statements are described in the Bank's periodic reports filed with the FDIC, including the Bank's current reports on Form 8-K filed today.
In addition, some of the financial information discussed on this call, includes non-GAAP financial measures. The Bank's earnings release, which was issued this morning and is available on the Bank's website, presents reconciliations to the appropriate GAAP measures and explains why the Bank believes such measures are useful to investors.
Now, I'd like to turn the call over to Jim Herbert.
James H. Herbert, II - Chairman and CEO: Thank you Dianne, and thanks to everyone for joining our call today. This was a very good quarter. Let me start with some highlights. First Republic reported strong earnings, which reflected continued excellent performance across our entire enterprise.
Core net income was up 37% compared to the same quarter last year, and core earnings per share rose 28%. Our loan volume, at $5.3 billion, was the best we've ever had. Deposit growth was quite good. We resumed our momentum in deposit gallery, increasing both liquid deposits and certificates. Wealth management had an outstanding quarter and business banking continued to perform quite well, achieving both strong deposit growth and new loan originations.
Most important of all, our asset quality remained strong as it has throughout the Bank's history. To sum up all this, book value per share has risen 13% year-over-year and is now $23.50.
Our loan portfolio grew by $2.1 billion in the quarter. This growth was funded by deposits of $1.4 billion plus some longer-term fixed-rate FHLB advances and the issuance of perpetual fixed-rate preferred stock. These longer term liabilities are an integral part of our asset liability matching strategy.
We view the recent rise to rates generally as a positive long-term. We will however continue to face some margin pressure in the upcoming quarters, as some of our higher rate loans continue refinance. We are offsetting this a bit and having some success in increasing the composite rate on our newer loans.