Results of OperationsNet Interest Income Net interest income was $16.3 million, up $1.6 million, or 11%, from the second quarter of 2012 and an increase of $4.3 million, or 36%, from the third quarter of 2011. Total average interest earning assets increased modestly from the prior quarter as higher mortgage production volumes resulted in a higher average balance of loans held for sale, partially offset by a decrease in cash and cash equivalents which was redeployed for loans held for sale production. Total average interest bearing deposit balances declined as a result of declines in higher-cost certificates of deposit, largely offset by an increase in lower-cost transaction and savings deposits. The net interest margin increased to 3.08% from 2.83% in the second quarter of 2012 primarily as a result of the repricing and conversion of maturing certificates of deposit and the recognition of accumulated interest collected on nonaccrual loans that were paid off in the quarter. Noninterest Income Noninterest income was $68.1 million, up $12.6 million, or 23%, from $55.5 million in the second quarter of 2012 and up $31.2 million, or 84%, from $37.0 million in the third quarter of 2011. The increase from prior quarter was primarily due to an $18.9 million increase in net gain on mortgage loan origination and sale activities, reflecting an increase in single family mortgage loan production volume and secondary market profit margins, partially offset by a $6.6 million decrease in mortgage servicing income, reflecting a decrease in income recognized from MSR risk management activities, largely reflecting a shift towards lower sensitivity to interest rates for the Company's mortgage servicing rights, which has resulted in a lower net gain from derivatives economically hedging MSRs. Noninterest Expense Noninterest expense was $45.8 million, down $1.0 million, or 2%, from $46.8 million in the second quarter of 2012 and up $13.5 million, or 42%, from $32.3 million in the third quarter of 2011. The decrease from prior quarter was primarily due to lower OREO expense, which decreased $5.7 million, partially offset by a $3.3 million increase in salary and related costs, reflecting an increase in employees and higher incentive compensation driven by elevated mortgage loan production volume.