Operator: Good day, ladies and gentlemen, and welcome to the Second Quarter 2013 Bank of Hawaii Corporation Earnings Conference Call. My name is Jackie and I'll be your coordinator today. At this time, all participants are in a listen-only mode. Following the prepared remarks there will be a question-and-answer session. As a reminder, this conference is being recorded for replay purposes.
I would now like to turn the presentation over to, Ms. Cindy Wyrick, Director of Investor Relations. Please proceed.
Cindy Wyrick - IR: Thank you, Jackie, good morning, everyone. Thank you for joining us today as we review the financial results for the Bank of Hawaii second quarter 2013. Joining me this morning is our Chairman, President and CEO, Peter Ho; our Vice Chairman and Chief Financial Officer, Kent Lucien; and our Vice Chairman and Chief Risk Officer, Mary Sellers. The comments today will refer to the financial information included in this morning's announcement.
Before we get started, let me remind you that today's conference call will contain some forward-looking statements and while we believe our assumptions are reasonable there are a variety of reasons that the actual results may differ materially from those projected.
And now, I'd like to turn the call over to Peter Ho.
Peter S. Ho - Chairman, President and CEO: Great, thanks, Cindy. Good morning, everyone and thanks for joining us today. Bank of Hawaii delivered steady, consistent and positive result to the second quarter of 2013. Our loans grew 3% from the second quarter of last year due to strong commercial, indirect auto and certain other consumer loan growth partially offset by reductions in refinance sensitive loan categories namely residential mortgage and home equity loans. We continue to attract quality departments during the quarter with consumer and commercial deposit balances up 4% from last year.
Consumer and commercial demand deposits were up 13% and 10%, respectively, in the quarter. Asset quality as you would expect continue to trend positively and our expenses remained well controlled. At the end of the quarter, our balance sheet remains strong with high levels of liquidity, capital and reserves.
And now let me turn the call over to Kent, who will give you some more detail into the numbers.
Kent T. Lucien - Vice Chairman and CFO: Thank you, Peter, good morning. Net income for the second quarter was $37.8 million or $0.85 per share compared to $36 million or $0.81 per share in the first quarter and $40.7 million or $0.90 per share in the second quarter of 2012. Our return on assets in the second quarter was 1.12% and return on equity was 14.6%.
Our efficiency ratio was 60%, a reduction from 61.9% in the first quarter. Year-to-date net income was $73.7 million or $1.65 per share, compared to $84.6 million or $1.85 per share in 2012. Year-to-date return on assets is 1.10% and return on equity is 14.4%. Our year-to-date efficiency ratio is 60.9%.
In the last several weeks longer-term interest rates have increased. The most immediate impact to us is in our mortgage operation. In the second quarter, mortgage income was 5.8 million versus 6.4 million in Q1. Mortgage applications are trending lower into the third quarter, and so we would expect to see, still lower mortgage revenue in the second half. Longer-term, if rates continue at this level or even increase, we should see our net interest margin increase, but this will take time to be fully realized.