Operator: Good day, everyone. Welcome to the Earnings Call for Western Alliance Bancorporation for the Second Quarter 2013.
Our speakers today are Robert Sarver, Chairman and CEO and Dale Gibbons, Chief Financial Officer. You may also view the presentation today via webcast through the Company's website at www.westernalliancebancorp.com. The call will be recorded and made available for replay after 2 O'clock pm Eastern Time, July 19, 2013 through Tuesday, August 20, 2013 at 9.00 Am Eastern Time by dialing 1-877-344-7529, and entering pass code 10031032.
The discussion during this call may contain forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks and uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement.
Some factors that could cause actual results to differ materially from historical or expected results include those listed in filings with the Securities and Exchange Commission, except as required by law, the Company does not undertake any obligation to update any forward-looking statement.
Now, for the opening remarks, I would like to turn the call over to Robert Sarver. Please go ahead.
Robert G. Sarver - Chairman and CEO: Thank you. Welcome to the Western Alliance second quarter 2013 earnings call. First, I'd like to spend a few minutes reviewing our performance highlights and then I'll turn the time over to Dale for a more detailed report. We'll then open it up for questions.
As we previously announced, we closed the Centennial Bank acquisition at the end of April, which has augmented our strong performance this quarter, with increased loans and deposits as well as a bargain purchase gain. We've really focused on maintaining our organic growth during the acquisition and integration of Centennial and believe we've been able to do that too.
I'm also pleased to report that Bank of Nevada has been released from their safety and soundness MOU, which has been in place since 2009. As you know, Nevada was perhaps the hardest hit state in the nation during the financial crisis. You'll see in the numbers today that Bank of Nevada is once again contributing to the strong results of the Company.
So, yesterday afternoon, our Company announced second quarter net income of $34 million or $0.39 per share, which includes a gain net of merger cost of $8.5 million from the acquisition of Centennial Bank for less than tangible book value, a $1.1 million gain on sale of OREO and a revaluation charge on our trust preferred of $3.3 million.
EPS was $0.30 excluding these non-core items, double the $0.15 earned in the second quarter of last year. Our net interest margin was 4.36%, the same as last quarter as improvement from Centennial offset continued loan pricing pressure and the cost of new debt to fund the Centennial purchase.