Good morning and welcome to the SB Financial Group Second Quarter 2017 Financial Conference Call and Webcast. I would like to inform you that this conference call is being recorded and that all participants are in a listen-only mode. We will begin remarks by management and then open the conference up to the investment community for questions and answers. I would now turn the conference over to Melissa Martin with SB Financial. Please go ahead Melissa.

Good morning, everyone. I would like to remind you that this conference call is being broadcast live over the Internet and will be archived and available on our Web site at www.yoursbfinancial.com under Investor Relations. Joining me today are Mark Klein, Chairman, President and CEO; Tony Cosentino, Chief Financial Officer; and Jon Gathman, Senior Lending Officer. Before I turn the call over to Mr. Klein, let me add that this call may contain forward-looking statements regarding SB Financial Group's financial performance, anticipated plans, operational results and objectives. Forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied on our call today. We have identified a number of different factors within the forward-looking statements at the end of our earnings release and you are encouraged to review those factors. SB Financial Group undertakes no obligation to update any forward-looking statement except as required by law after the date of this call. In addition to the financial results presented in accordance with GAAP, this call will also contain certain non-GAAP financial measures. I will now turn the call over to Mr. Klein.

Thank you, Melissa, and good morning, everyone, welcome to our second quarter webcast. As you know, we filed our earnings release yesterday and of course, we will provide additional depth and details on the comments that myself and Tony will make today regarding our second quarter results. I will make a few high level comments, I will talk about some of our initiatives, and then, Tony will dive into some of the details. For the quarter, GAAP net income was $2.3 million, a 2.3% improvement over the prior year quarter representing a return on average assets of 1.09% and 16% improvement over the linked quarter. Net income available to common shares for the quarter was $2.07 million or $0.37 per share representing a 5.7% improvement over the prior year quarter. Trailing 12 months EPS now stands at $1.45, a 16% improvement over prior year. Loan balances expanded $47 million or 7.7%, top-line revenue for the quarter expanded approximately 6.5% from the year ago quarter and 10.8% from the linked quarter. Expenses increased 5.4% from the year ago quarter reflecting a positive operating leverage of 1.2x as a result of some of our expansion initiatives. Expenses increased 5.7% from the linked quarter. Assets under management expanded to $407 million, a $40 million increase over the prior year quarter and a slight increase from the linked quarter. Mortgage origination volume for the quarter was $98 million, an improvement of $41 million over the linked quarter and 94% coming from new clients to State Bank. Asset quality metrics strengthened, and finally, SBA loan volume for the quarter came in at $4.2 million. Our results continued to reflect as we've discussed in prior webcast, our five key strategic initiatives. They continue to be revenue diversity, achieving scale with an expanded foot print, greater scope…

Thanks Mark, and good morning, everyone. For the quarter as Mark indicated, we had net income of $2.3 million, $0.37 per diluted EPS, which was up $0.02 or 5.7% from the prior year and up $0.06 or 19.4% from the linked quarter. As we look at some of the quarterly highlights, operating revenue was up 6.5% from the prior year and up 10.8% from the linked quarter. Loan sale gains delivered $2.7 million for mortgage, small business and agriculture. And lastly, as Mark said we continue to reduce our non-performing ratio now down to 46 basis points. As we start with margin within the income statement, net interest income was up from the prior year by 8.4% and up from the linked quarter by 7%, end of period loan balances from the prior year were up $46.8 million, 7.7% increase. And in this quarter specifically, we increased our loan balances by $24.9 million. Our average loan yield of 4.51% increased by 3 basis points from the prior year reflecting the recent rising rates, and overall, earning asset yield was up 6 basis points compared to the prior year. Both of these variances were impacted by some non-performing interest recapture late in 2016. On the funding side, we continued to experience an increase in the cost of our interest bearing liability, coming in at 64 basis points for the quarter, up 9 basis points from the prior year, and up 4 basis points from the linked quarter grew more aggressive on deposit pricing this quarter in order to fund anticipated loan volume. Net interest margin at 3.73%, was down just 2 basis points from the prior year but was up from the linked quarter by 14 basis points. The second quarter reflected higher loan fees compared to both the prior year…

Thank you, Tony. We continue our strong performance trend with another solid quarter an ROAA of 1.09%, loan growth of nearly 4% and $88 million in residential real estate loans, excellent loan quality metric and robust SBA loan sale gains. With more scale in our newer higher growth markets that we discussed coupled with greater scope of service and existing household, our prospects with that top decile performance remained clearly in sight. We are pleased with our second quarter performance which for us and all of our investors certainly sets the stage for a strong second half of the year. Now, I will turn the call back over to Melissa, if there are any questions from our investment community. Melissa?

Thank you, Mark. Operator, we are now ready for our first question.

We will now begin the question-and-answer session. [Operator Instructions]

While we were waiting for questions, I would like to remind you that today's call will be accessible on our Web site at www.yoursbfinancial.com under Investor Relations.

[Operator Instructions] The question queue is empty. This concludes the question-and-answer session. I would like to turn the conference back over to Mr. Klein for any closing remarks.

Once again, thank you for joining us this morning. We certainly look forward to speaking with you in October for our third quarter results. Have a great weekend. Good bye.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.