Jim will now begin the prepared portion of our call. Jim?James J. Pieczynski Thank you, Dennis, and good afternoon, everyone. For us, clearly, the earlier than expected reversal of $347 million of our deferred tax asset valuation allowance was a very positive development for us in the second quarter. It substantially increased our tangible book value and moves us one step closer to applying for bank holding company status. Additionally, our loan portfolio grew very nicely with growth of 5% since March 31 and growth of 30% based on where we were at a year ago level. As we said earlier, our expectation for this year is to have 15% to 20% loan growth and we are still on track for that. This growth is still being done at attractive rates, which is resulting in our net interest margin for the second quarter of 4.95%, which is at the high end of our projected range for the year of 4.75% to 5%. Finally, we repurchased 12 million shares during the quarter, which pushes the total repurchases to over 102 million shares since our buyback initiative began in December of 2010. This has resulted in roughly a 30% reduction in our shares outstanding. From an overall earnings perspective, excluding the tax benefit resulting from the valuation allowance reversal, our net income for the quarter was $0.17 per share. As Tad will describe, some of the bank metrics showed modest declines from the first quarter levels, but that is generally explained by onetime items and an unusually low net loan loss provision in the prior quarter. For the first 6 months of the year, however, we are on plan or slightly ahead of plan on key financial performance metrics relating to growth, profitability and credit performance. After the quarter closed, as expected, we retired the remaining $23 million of our 7 1/4% convertible debentures that were outstanding. Our recourse debt at the Parent has now been reduced by 2/3 over the past 12 months and the only remaining recourse debt we have at the Parent is our long-dated trust preferred securities, which do not begin to mature until 2034.
Recognizing that reversal of the valuation allowance happened 6 months earlier than projected, I wanted to spend a moment explaining the process which led us to conclude that doing so was appropriate this quarter. As part of our normal quarterly review of the valuation allowance with our auditors, we mutually concluded that there was sufficient positive evidence to release the majority of the valuation allowance as of June 30. That evidence included 8 quarters of sustained profitability, meaningful improvement in the reliability of earnings, a significant reduction in impaired loans, and a dramatic decline in the size of the Parent loan portfolio, which gave rise to most of the historical credit losses. The reversal resulted in a tax benefit of $1.49 per share and positively impacted the company's tangible book value, which increased to $7.15 at the end of the quarter. We have previously indicated that once this initial reversal takes place, we would not expect any material reversal of the remaining valuation allowance, which is now $166 million as of June 30. Based on detailed analysis of the valuation allowance, which was undertaken prior to the action taken this quarter, we are not forecasting any additional tax benefit from the remaining allowance.Read the rest of this transcript for free on seekingalpha.com