Operator: Good morning. My name is Brenson, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Sallie Mae Second Quarter 2013 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.
Thank you. I'd now like to hand the call over to our host, Mr. Steve McGarry, Senior Vice President of Corporate Finance. Please go ahead, sir.
Steven McGarry - IR: Thank you very much, Bren. Good morning, everybody, and thank you for joining us for this earnings call. With me today are Jack Remondi, our President and Chief Executive Officer and Joe DePaulo, our EVP of Banking and Finance.
But before we begin, please let me remind you that our discussion will contain predictions, expectations, and forward-looking statements. Actual results in the future may be materially different from those discussed here. This could be due to a variety of factors and listeners should refer to discussion of those factors on the Company's Form 10-K and other filings with the SEC.
During this conference call, we will refer to non-GAAP measures we call our core earnings. A description of core earnings and a full reconciliation to GAAP measures as well as our GAAP results can be found in the second quarter 2013 supplemental earnings disclosure. This is posted along with the earnings press release on the Investors page at salliemae.com.
Thank you. And I'll now turn the call over to Joe.
Joseph DePaulo - EVP, Banking and Finance: Thank you, Steve. Good morning, everyone. I'll be referencing the earnings call presentation available on our website during my prepared remarks, beginning with Slide 3.
In the second quarter, we delivered consistent earnings. We saw improvements in delinquency and charge-offs across the portfolio, dropping to the lowest level since 2008. We grew our new loan originations by 15% and maintained high credit standards for those loans. We returned capital to shareholders by purchasing nearly 200 million of shares and announcing an additional $400 million authorization per share repurchases, and we were active in the capital markets.
On Slide 4, you'll see a high-level summary of our results. For the quarter, core earnings were $462 million or $1.02 per share compared with $243 million or $0.49 per share for the year-ago quarter. These results include $0.37 per share from FFELP trust residual sales gains and $0.08 per share from the sale of our Campus Solutions business. We also had $0.03 per share from debt repurchase gains which were offset by $0.03 related to restructuring and other corporate reorganization expenses.
Operating expenses were $258 million versus $250 million in the first quarter of '13 and $231 million in the second quarter of '12. The increase of $27 million versus the prior year quarter is primarily made up of spending in the Consumer and Business Services segments. We spent $13 million more in Consumer over the year-ago quarter and we saw higher origination volume and better credit quality. In Business Services, we spent $12 million more and saw corresponding increases in revenue of $27 million in the related businesses.