The decrease in net interest and dividend income reflected a combination of a planned decrease in the Bank's assets and liabilities as well as decreased lending opportunities, partially offset by a higher net interest margin as noted above. Total average interest-earning assets decreased by $192 million in Q2-11 from Q2-10. A large portion of the cash inflows from the Q2-10 bulk loan sale as well as loan payoffs and principal repayments since June 30, 2010 were used to fund $177 million of deposit outflow and repayments of $21 million of maturing FHLB borrowings. The overall decrease in assets positively impacted the Bank's regulatory capital ratios.The 11 basis point increase in the Q2-11 net interest margin from Q2-10 was nearly all due to the recovery of $0.5 million of past due interest on one loan. Overall, the yield on average interest-earning assets decreased by 21 basis points to 4.94% in Q2-11, from 5.15% in Q2-10, due to the impact of the bulk loan sale (a large portion of which included the sale of $108 million of TDRs and other loans yielding approximately 5%), payoffs of other higher yielding loans and early calls of U.S. government agency security investments, coupled with the reinvestment of a large portion of the resulting cash inflows into security investments with lower market interest rates. The average cost of funds decreased by 32 basis points to 2.92% in Q2-11, from 3.24% in Q2-10 due to lower rates paid on deposit accounts. Net earnings for the six months ended June 30, 2011 increased by $58.9 million over the same period of 2010 due to the following: a $103.6 million decrease in the total provision for loan and real estate losses; a $2.2 million decrease in real estate expenses; a $0.3 million increase in noninterest income; and a $0.5 million decrease in noninterest expenses. The aggregate of these items was partially offset by a $2.6 million decrease in net interest and dividend income and a $45.1 million increase in income tax expense. The reasons for these changes are the same as those described earlier regarding the quarterly variances.