Mortgage BankingMortgage Production Single family closed loan production designated for sale totaled $1.37 billion, increasing $299.6 million, or 28%, from the second quarter of 2012 and increasing $890.2 million, or 186%, from the third quarter of 2011. Single family mortgage interest rate lock commitments, net of estimated fall out, totaled $1.31 billion during the third quarter, up $9.8 million, or 1%, from the second quarter of 2012 and up $682.3 million, or 108%, from the third quarter of 2011. The Company continues to increase its mortgage production capacity, increasing mortgage origination and support personnel by 14% from the prior quarter. Net gain on mortgage loan origination and sale activities was $64.4 million, an increase of $18.9 million, or 42%, over the second quarter of 2012 and up $48.6 million, or 308%, over the third quarter of 2011. Our mortgage loan origination and sale revenue growth reflects continuing strong demand for both purchase and refinance mortgage loans in our markets, including refinances through the federal government's expanded Home Affordable Refinance Program ("HARP 2.0"), driven by record low mortgage interest rates and strong secondary market profit margins that began to increase in the third quarter of 2011. HARP 2.0 refinances represented approximately 17% of loans originated in the third quarter. Overall, single family mortgage production was comprised of 37% purchases and 63% refinances in the third quarter, compared with 35% purchases and 65% refinances in the prior quarter. Mortgage Servicing Mortgage servicing income of $506 thousand decreased $6.6 million, or 93%, from the second quarter of 2012 and decreased $18.0 million, or 97%, from the third quarter of 2011. The decrease for the quarter largely reflects a reduction in sensitivity to interest rates for the Company's mortgage servicing rights (MSRs), which has enabled the Company to reduce the notional amount of derivative instruments used to economically hedge MSRs. The lower notional amount of derivative instruments, along with a flatter yield curve, resulted in a lower net gain from derivatives economically hedging MSRs, which negatively impacted mortgage servicing income. In addition, MSR risk management results for the quarter also reflect a decline in the fair value of MSRs due to changes in model inputs and assumptions primarily related to factors other than interest rate changes, which are not within the scope of the Company's MSR hedging strategy. Such factors included a streamlined refinance program implemented by FHA and higher expected home values, both of which generally lead to higher prepayment speeds, and resulted in a net loss from MSR risk management activities in the quarter. The significant net gain from MSR risk management activities in the third quarter of 2011 resulted from a substantial widening of mortgage interest rates versus swap interest rates and lower realized prepayments. The total loans serviced for others portfolio increased to $8.92 billion compared with $8.30 billion at June 30, 2012.