The inclusion of this forward looking information should not be regarded as representation by the company that future plans, estimates, or expectations contemplated by company will be achieved. Such forward looking statements are subject to various risks and uncertainties and assumptions relating to the company’s operations, financial results, financial condition, business prospects, growth strategy, and liquidity. If one or more of these other risks, or uncertainties materialize of if the company’s underlying obstructions prove to be incorrect, the company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The company does not undertake any obligation to publicly update or review any forward looking statement whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward looking statements. Information on these factors could be found in an Annual Report on a Form 10-K for the year ended December 31, 2011 available at the SEC's website.Now I'll turn the call over to John Kanas. John? John Kanas Good morning everybody. Just for the record Raj Singh is here and so is John Bohlsen. So when we get questions here if you have a question for either of them they're sitting by me. Obviously we are very pleased with the quarter. The numbers speak to themselves and I'll remind you that over this past quarter we also implemented about a 20% increase in our dividend. We during the quarter also completed the acquisition of Herald National Bank in New York and that is up and running under Raj's attentive car and getting well organized and ready for us to merge it into this bank at some time in the future. Also during the quarter we completed the shorter conversions of the holding company from being a drift holding company to becoming a bank holding company and the bank, Bank United that is, from being a drift institution to becoming an OCC Bank and also of course Herald as an OCC Bank.
We are particularly pleased with the continuation of the trend of the growth of loan assets. You can see that even excluding Herald we grew just under $400 million for the quarter which is about on the screws from where we expected it to be, sort of the interesting point. That's the first time as a result of this growth and as a result of the fact that the shrinkage of the FDIC asset in the covered loans was just about $100 million this quarter. So the first time now our covered loans are actually less than 50% of our total portfolios running at 49 down from where they were at quarter end at the end of the year about $59%. So 49% versus 59%.Deposits obviously showed continued growth. The cost of deposits continues to come down and while the average for the quarter was 0.9 it's actually continuing to decrease as the quarter unfolds and it’s probably at this moment, probably closer to 80 basis points than 90 basis points. Demand deposits as a result of our emphasis on commercial relationships now represents almost 20% of total deposits and were less than 2% when we came here and we were very pleased with the fact that that trend is continuing, in fact picking up velocity. Probably the most important thing for me and for us here at the bank is that while this comes largely as a result of our very strong competitive position in Florida and the fact that a lot of the banks here are weakened and the larger banks have not really gotten their act together yet. We are seeing a significant influence from a noticeable improvement in the underlying economy particularly in South Florida, particularly in Miami Dade where almost three quarters of our branches are located. So we did not expect to get that kind of help from the economy but that growth that we're seeing is continuing to build and it would appear that it's going to continue to build for the balance of this year and on into next year. Read the rest of this transcript for free on seekingalpha.com