Welcome to the TFS Financial Corporation's second fiscal quarter earnings conference call and webcast. Hosting the call today from TFS Financial is Mr. Marc Stefanski, Chief Executive Officer. He is joined by Mr. Dave Huffman, Chief Financial Officer; Mr. John Ringenbach, Chief Operating Officer of Third Federal Savings; Ms. Meredith Weil, Chief Retail Officer of Third Federal Savings; and Mr. Paul Huml, Chief Accounting Officer. (Operator Instructions) Some of the information provided during the conference call may contain statements of future expectations and other forward-looking statements. These expectations are based on the management's current views and assumptions and involve known and unknown risks and uncertainties. It is possible that the company's actual results and financial condition may differ possibly materially from the anticipated results and financial conditions indicated in these forward-looking statements. For a discussion on some of the risks and important factors that could affect the firm's future results, see Risk Factors in the company's latest Annual Report on www.thirdfederal.com. TFS Financial Corporation assumes no obligation to update any forward-looking information provided during the conference call. It is now my pleasure to turn the floor over to Mr. Marc Stefanski.

Thank you very. I would like to say good morning to everyone and welcome. We have Paul Huml that will be going over the slide presentation that was released. And Paul, I'd like to turn the floor over to you and go ahead with your presentation.

Thanks Marc. And welcome everyone, thanks for joining us. We had a little difference that the earnings release came out two days ago, normally we like to do this a day after, but apologize for any inconvenience that caused. But going on to really Page 3 of the slide, you'll there's not a lot of change in the overall situation of TFS Financial, total assets, deposits, equity are very similar to where they've been in the past and no change in our organizational structure from the mutual holding company. Going to next page, on Page 4, I think just goes over our strategic overview and sort of a highlight is the ARM loan production that we've continued to generate a good percentage of our loan production is in the ARM area, 58% of the current year, which is an increase over the past couple of years. And again, we've always focused on high credit quality and you'll see the FICO score 783 and average LTV 62% of our current production. So we continue to focus on high credit quality. Page 5, again, not a lot of change in deposit breakdown, where we operate in Ohio and Florida. And actually deposits have increased a little bit in the current quarter. Page 6, turning over the financial highlights. I think you'll see in the loan area that we continue to have consistent loan growth. I have combined on the net loans line a portion of loans held for sale, which is about $245 million have included in that net loans number to really reflect the total loan growth that we have. And I think you'll see the biggest change in the current quarter was our provision, which was $27 million for the quarter, which was up from $15 million last quarter and…

(Operator Instructions) Our first question is coming from Mike Shafir with Sterne, Agee.

Just from a housekeeping standpoint, what tax rate should we be using moving forward?

I think we might have though in terms of reflecting the impact of our bank-owned life insurance, because that's the biggest common item that we have. And I think we've thought in terms of adjusting whatever your estimate is for pre-tax earnings for the year by about $6 million. Now, I think that we've used somewhere obviously south of the statutory rate of 35%. But for your projections that's how I'd factor in for the effective rate.

So basically looking at pre-tax income at somewhere at 35% rate and then subtracting the $6 million from that tax number?

Actually, I would subtract the $6 million from the pre-tax estimate dollar amount. So if you're estimating $50 million pre-tax, I'd take $6 million away from there and apply the 35% to $44 million.

On the MOU in terms of your recent commentary and this is the first time you guys have kind of addressed this and giving any kind of timeframe. Just any further thoughts on that or why you assume that you're going to be able to get some kind of validation in and around September quarter?

It's our best guess. And we're going on two years on this thing from when it all began. And since we have in our minds really met all the key provisions there. And the OCC and the Fed have been our regulator for almost a year now. We're hoping that we're seeing some light at the end of the tunnel. Paul, do you have another comment.

No, clearly the regulator have said, we are not suppose to comment on the status of their exams. But it's really just our best guess that fourth quarter we might hear something.

One other thing I could add to that is that in our discussions with the regulators, they are very anxious to continue to move these kinds of things forward, especially, with organizations like ours that prevent and actually don't really have a threat to the FDIC insurance.

As we think about post-MOU and capital deployment opportunities and so forth. How do you guys think about, obviously you haven't had any commentary on MHC dividend wavers. So historically you guys have been pretty active in repurchasing your own shares. So maybe you could just kind of give us a thought process on priority of capital deployment with your excess capital position post-MOU?

Well, we've always talked about three different ways of deploying that capital, growing the balance sheet, and the dividends, and of course the buybacks. And unfortunately, if we can't or it's difficult to do the dividends or just deploying more money into growth and to the buyback process.

(Operator Instructions) And it does appear that we have no further questions in the queue at this time. I would like to turn the floor back over to Mr. Marc Stefanski for any additional or closing remarks.

Yes. Thank you. The only thing I'd like to add is that, we all, the Third Federal management team and the board, sincerely appreciate your commitment to Third Federal, the fact that you've considered to be shareholders during this rough time. It kind of gives us a shot in the arm that we're still doing the right things. And we'll be out of this dilemma that we're in, in short order, long order depending on how long you are to hold your breath for. And again, the economy it's a roller coaster ride with housing values and unemployment the way it is that will continue to be a nemesis. And we're using our finest and best methods and people to try to figure out, where we should be with some of these loan loss provisions and those kind of things that help our ability to grow the company the way we like to grow it and be as profitable as we like to be. With that ladies and gentlemen, thank you again very much, from our team and our board. We appreciate your confidence in us. And we'll continue to slug through the regulatory issues that are holding us back right now. And was there anyone else from the team that would like to add in my comments? Well, thank you. And appreciate it and thanks for joining in.

Thank you. This does conclude today's teleconference. As a reminder, the dial-in number for the replay is 1800-723-6062. Please disconnect your lines at this time. And have a wonderful day.