Our comments today will refer to the financial information included in the earnings announcement this morning. 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 Ho

Thanks Cindy. Good morning everyone. Thanks for joining us today. Financial results for the second quarter of 2012 represent another good quarter for Bank of Hawaii. We continued to generate loan and deposit growth. Consumer checking account count grew 8% year on year, and we maintained our commitment to strong and risk expense management.

In line with the industry, our net interest margin was adversely impacted by the low interest rate environment that we find ourselves in for the quarter. During the quarter, we repurchased $20 million of stock, continued to pay our dividend and retained strong levels of liquidity, capital and reserve.

Now let me turn the call over to Kent to review financials.

Kent Lucien

Thank you, Peter. Good morning. Net income for the second quarter was $40.7 million or $0.90 per share, compared to $43.8 million or $0.95 per share in the first quarter and $35.1 million or $0.74 per share in the second quarter of 2011.

Our return on assets in the second quarter was 1.19% and return on equity was 16.2%. Year to date net income was $84.6 million or $1.85 per share compared to $77.5 million or $1.62 per share in 2011. Year to date return on assets was 1.24% and return on equity was 15.7%. Our year to date efficiency ratio was 57.6%, a reduction from 59.8% in 2011.

Our net interest margin in the second quarter was 2.98% compared to 3.06% in the first quarter and 3.16% in the second quarter of 2011. Year to date net interest margin was 3.02% compared to 3.20% last year. Lower margin is due mainly to the lower interest rate environment.

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