Good day, ladies and gentlemen. Thank you for standing by. Welcome to BofI Holding, Inc.'s Third Quarter Fiscal 2014 Earnings Conference Call. [Operator Instructions] This conference is being recorded today, Tuesday, May 6, 2014. Now I'd like to turn the conference over to Johnny Lai from MZ Group. Please go ahead, sir.

Thank you, and good afternoon, everyone. Joining us today for BofI Holding, Inc.'s Third Quarter Financial Results Conference Call are the company's President and Chief Executive Officer, Greg Garrabrants; and Executive Vice President and Chief Financial Officer, Andy Micheletti. Greg and Andy will review and comment on the financial and operational results for the third quarter, and they will be available to answer questions after the prepared presentation. Now before we begin, I would like to remind our listeners on this call, our prepared remarks may contain forward-looking statements that are subject to risks and uncertainties and that management may make additional statements in response to your questions. Therefore, the company claims the protection from the Safe Harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements related to the business of BofI Holding, Inc. and its subsidiaries can be identified by common-use forward-looking terminology, and those statements involve unknown risks and uncertainties, including all business-related risks that are in more detail in the company's filings on the Form 10-K, 10-Q and 8-K with the SEC. This call is being webcast, and there will be an audio replay available on the company's Investor Relations website located at www.bofiholding.com. All the details of this call were provided on the conference call announcement and in the press release today. At this time, I would like to turn the call over to Mr. Greg Garrabrants, who will provide opening remarks. Greg, the floor is yours.

Thank you, Johnny. Good afternoon, everyone, and thank you for joining us. I'd like to welcome everyone to BofI Holding's conference call for the third quarter of fiscal 2014, ended March 31, 2014. I thank you for your interest in BofI Holdings and bank -- and BofI Federal Bank. BofI announced record net income for its third quarter ended March 31, 2014, of $14,610,000, up 40.5% when compared to the $10,402,000 earned in the third quarter ended March 31, 2013, and up 11.1% when compared to the $13,154,000 earned last quarter. Earnings attributable to BofI's common stockholders were $14,533,000, or $1 per diluted share for the quarter ended March 31, 2014, compared to $0.74 per diluted share for the quarter ended March 31, 2013, and $0.91 per diluted share for the quarter ended December 31, 2013. Excluding the aftertax impact of net gains related to investment securities, core earnings for the third quarter ended March 31, 2014, increased $4,801,000, or 47.1% when compared to the quarter ended March 31, 2013. Other highlights for the third quarter include: Total assets reached $3,850,000,000 at March 31, 2014, up $760 million compared to the June 30, 2013, assets and up $889 million from the third quarter of fiscal 2013. Return on equity reached 17.94% for the third quarter. Our net interest margin was 3.89% for the quarter ended March 31, 2014, a 12 basis point decrease over the quarter ended March 31, 2013, and a 15 basis point improvement over the quarter ended March 31, 2013. Total deposits reached $2,833,000,000, up $430 million when compared to December 31, 2013. Our loan units had another great quarter, with $696 million in gross loans originated in the quarter. As a result, the bank achieved good quarterly loan growth, growing loan balances by 11.4% over the…

Thanks, Greg. First, I wanted to note that, in addition to our press release, our 10-Q was filed with the SEC today and is available online through EDGAR or through our website, bofiholding.com. Second, I will discuss our quarterly results on a year-over-year basis, meaning fiscal 2014 versus fiscal 2013, as well as this quarter ended March 31, 2014, versus the second quarter ended December 31, 2013. For the quarter ended March 31, 2014, net income totaled $14,610,000, up 40.5% from the third quarter of fiscal 2013. Diluted earnings were $1 per share this quarter, up $0.26, or 35.1% compared to the third quarter of fiscal 2013. Net income increased 11.1% compared to the second quarter ended December 31, 2013. For the 9 months ended March 31, 2014, net income totaled $39,946,000, up 37% compared to the 9 months ended March 31, 2013. Diluted earnings were $2.76 per share for the 9 months ended March 31, 2014, up $0.64, or 30.2% compared to the 9 months ended March 31, 2013. Excluding the aftertax impact of gains or losses associated with our securities portfolio, core earnings were $15 million for the quarter ended 2014, up 47.1% year-over-year from the $10,199,000 in core earnings for the third quarter of fiscal 2013, and up 8.8% from the $13,786,000 in core earnings for the last quarter ended December 31, 2013. Net interest income increased $9,461,000 during the third quarter ended March 31, 2014, compared to the third quarter of fiscal 2013, and increased $2,836,000 compared to the second quarter ended December 31, 2013. This was a result of increases in average interest earning assets, combined with a decrease in cost of funds, resulting in net interest margin of 3.89%. This is compared to 3.74% in the third quarter of fiscal 2013. The cost of…

Thanks, Andy. Operator, if you could open the call for questions at this time. Thank you.

Before we go to questions, I'd like to turn it back to Johnny Lai for a quick announcement.

Great. Thank you, all, for joining us this afternoon. That concludes the prepared remarks. We will now move to the question-and-answer session. [Operator Instructions]

We'll go first to Michael Millman with Millman Research and Associates.

I may have missed this, so I apologize in advance. Regarding the deal of buying Block Bank, will you need to borrow money to support, particularly the credited -- the cost of the advanced credit? Or will -- and if you need to borrow, is Block the likely lender?

Sure. First of all, it's worth remembering that the H&R Block transaction, although signed, is subject to regulatory approval, and we would need that regulatory approval to close the transaction. With regard to the structure of the deal, we are assuming approximately $500 million of deposits in that transaction. There is no premium for that -- for those deposits, nor are there any significant assets of any kind being purchased or assumed as a result of the transaction. So the primary nature of the transaction is an assumption of deposits, which will reduce our cost of funds and increase our liquidity, as well as enhance our fee revenue through a series of products that we're going to be issuing through H&R Block, including prepaid cards and Emerald Advance loan product and a refund transfer product. The only product within those 3 products that has any minor impact on the asset side or from a borrowing perspective, would be -- they were retaining a relatively small component of the Emerald Advance loans, which is around $40 million over the whole season, and they pay off and come and go. So the actual level of those, at any period, is even significantly lower than $40 million. So no, there's no need for borrowing or anything associated with that transaction.

We'll take our next question from Julianna Balicka with Keefe, Bruyette, & Woods. Julianna Balicka - Keefe, Bruyette, & Woods, Inc., Research Division: I have a couple of questions. One, on the deposit growth that you saw this quarter -- and I'm sorry I missed this in your prepared remarks, could you talk about some of the qualitative drivers behind some of the extraordinary growth and maybe some thoughts about how that will continue through the rest of the calendar year? And any seasonality we should be looking for in that? And related to that question, it looks like on your average balance sheet, you have a higher level of IV [ph] deposits and excess liquidity. So should we think about that as getting redeployed in the near future? Or are you going to have to hold more liquidity for whatever various reasons, kind of going forward?

We have a -- just, from an on balance sheet liquidity perspective, around 5% is just typically where I think you'd expect to see that. That may be above that at different periods of time. We did have a good deposit growth quarter. And we continue to add personnel in that area, increase our marketing and focus on continued deposit growth across both business and consumer. So we hope to be able to continue it to achieve that good deposit growth. And obviously, if the H&R Block acquisition is consummated, that'll assist in that growth as well. So we're putting continued effort into that side of our balance sheet and improving the mix and growing the deposit base. And we feel confident that we can continue to fund prudent asset growth with the deposits that we generate. Julianna Balicka - Keefe, Bruyette, & Woods, Inc., Research Division: Very good. And then for my other question, the 40% efficiency that you're -- that you think you'll get to before the revenues from H&R Block Bank will kick in, how quickly do you think you'll go from 35% to 40% over the next quarter? Or is this more like 2 or 3 quarters? And then related to that, you've added a number of senior management this quarter, but are you adding more senior management throughout the year, especially in advance of H&R Block Bank, maybe in the areas of compliance, et cetera, that we should be thinking about?

Sure. So partly, the 35% efficiency ratio is partly due to the cost-efficiency initiatives, which are really been grinding out. It's much as the little things that get leaky as you grow. But also, it has been a result of agency mortgage banking income declining, and so that did reduce the expenses in that area. We see a pickup that's significant in agency mortgage banking over the last month, and the pipeline is looking a lot better. That, therefore, is going to drive marketing expense up and some other things. So I didn't -- what I said in the prepared remarks was that we'd be closer to 40% than it would be to 35%. Obviously, I'm hopeful that we don't get to 40%. But we have -- we continue to add risk personnel. We have another senior BSA officer, 3 new BSA analysts with -- it's a substantial increase. We do believe that those are hires in advance of the things that we hope to accomplish with H&R Block Bank. And so it's a little bit tough to say because the efficiency ratio is somewhat driven by what happens on the loan production side. So I think that the good side of it will be, if it's closer to 40%, then you'll have good agency mortgage banking income. But I would think that somewhere in the area between 35% and 40% is probably a reasonable estimate for next quarter. Although, I really don't want to get more specific than that, just because I might be wrong. We're continuing to focus on risk personnel and making sure infrastructure's in good shape for our growth. So...

[Operator Instructions] And we'll go next to Don Worthington with Raymond James. Donald Allen Worthington - Raymond James & Associates, Inc., Research Division: I missed 2 numbers, Greg, from the presentation. One was the -- in terms of the pipeline, the -- I got the last 2 last numbers on the multifamily and the C&I, but I missed the single family.

Okay. The jumbo pipeline was $363 million. But not [ph] -- that's jumbo only, yes. Donald Allen Worthington - Raymond James & Associates, Inc., Research Division: Okay. And then on the business deposits, what was the balance at the end of the quarter?

I got it. It would be $1,113,000,000. Donald Allen Worthington - Raymond James & Associates, Inc., Research Division: Okay. Great. And then, in terms of, I guess, the loan pricing on the jumbo product, and I don't say specifically or necessarily where your pricing is. But just on a relative basis to the market, where would you say you are?

I would say that we're within the market on our various products. The -- there's a lot of different market niches associated with the jumbo product and we have a pretty broad range of products to offer folks. So we focus on portfolio and the 5-1 ARM, but the -- we have a -- some [indiscernible] 30-year products that are securitization-eligible products, and those have kind of fallen a little bit out of favor lately. But I'm wondering, with some of the long rates decrease as we've seen over the past couple of weeks, you won't see that pick up a little bit. So I think we're in a good position there. We don't see -- we don't feel compression on -- from a rate perspective there, at least at this time. And we continue to look for that. But our volume's sufficient for our appetite and we try to focus on speed of service, on purchase business, the vast majority of that business is purchase. We get deals done in a quick period of time with good service, and so that assists us in gaining market share.

And we have no further questions. I'd like to turn the call back over to Mr. Johnny Lai for any additional or closing comments.

Great. Thanks for your interest in BofI, and your participation on today's call. If you have any follow-up questions, please contact me. Have a great afternoon.

Thank you. Thank you, everybody.

Thank you. Bye-bye.

That does conclude today's call. Thank you for your participation.