Good morning, and welcome to the TrustCo Bank Corp.'s Second Quarter 2013 Earnings Call and Webcast. [Operator Instructions] Before proceeding, let mention that all statements in this news release that are not historical are forward-looking statements within the meaning of the Securities Exchange Act of 1934 as amended. The forward-looking statements may include statements regarding future events or performance and statements regarding TrustCo's ability to offer and sell securities under its shelf registration statement. Such forward-looking statements are subject to factors that could cause actual results to differ materially for TrustCo from those discussed. TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases, have affected and, in the future, could affect TrustCo's actual results and could cause TrustCo's actual financial performance to differ materially from that expressed in any forward-looking statement: credit risk, the effects of and changes in, trade, monetary and fiscal policies and laws, including interest rate policies in the Board of Governors of the fiscal -- Federal Reserve System, inflation, interest rates, market and monetary fluctuations, competition, the effect of changes in financial services laws and regulations, including laws concerning taxation, banking and securities, real estate and collateral values, changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; changes in local market areas and general business and economic trends and the matters described under the heading Risk Factors in our annual report on Form 10-K for the year ended December 31, 2012 and in our subsequent securities filings. Please also note this event is being recorded. I would now like to turn the conference over to Robert J. McCormick, President and CEO. Please go ahead.

Thank you, and thank you for joining us this morning. As the operator said, I'm Rob McCormick, President and CEO of the bank. Joining me on the call are Bob Cushing, our CFO; and Scott Salvador, our Chief Banking Officer. Also with us in the room is Kevin Timmons to keep us in line. I'm going to hit the highlights summarizing our results, then Bob and Scott will detail the numbers in our operations then we'll have some time for questions. We are pleased with our second quarter results. Our net income of $9,763,000 was up about 7.7% over the comparable period last year. This continues the positive trend of significant net increases for quite some time now. Our ROA was up to about 0.88%. Our ROE was up to 10.83%. We showed an improvement in our already world-class efficiency ratio to 53.5% and remain committed to further improvement. Our margin dipped to 3.1%. As most of you know, we maintain a very liquid balance sheet with relatively short maturities. This was done in -- this has been done in anticipation of higher rates. We believe this will pay off, as we are beginning to see those higher rates. And we were -- we are going to cautiously begin putting some of these funds to work. We continue our commitment to maintaining a very liquid balance sheet. All of our asset quality ratios improved during this quarter. This improvement included last quarter as well as the comparable period last year. Nonperforming loans, 1.57; nonperforming assets, 1.21%; and our coverage ratio stood at 1.1x. Our allowance stood at $47,600,000 after a $2 million addition this quarter. The allocation was the same as last quarter and down from a year ago. We did sell some nonperforming loans during the quarter. These were…

Thank you. As Rob noted, net income came in at $9.8 million, an increase of approximately 7.7% from the second quarter of 2012. That resulted in earnings per share of $0.104 per share. For the year, our net income was $18.9 million, an increase of 5.3% over the first 6 months of 2012. So as Rob said, we are very pleased with both the second quarter and the first half of 2013 results. Return on equity and return on assets for the quarter were both very healthy at 10.83% and 88 basis points, respectively. During the quarter, we made the decision to lighten up on some of our investment portfolio, and we sold approximately $125 million of mortgage-backed securities, corporate bonds and agency callable bonds. And this generated a gain of approximately $1.4 million. This was done early in the quarter before the recent run-up in yields on the 10-year treasuries. We put all the proceeds from that sale into the federal funds sold portfolio, which accounts for the increase in the average and the actual balance in that account. This obviously has an impact on the yields we're earning on our assets and accounts for approximately a 6 basis point reduction in our net interest margin for the quarter. It is one thing to make the decision to sell part of the investment portfolio, but we also made the decision to put those proceeds into cash and not reinvest them back into the marketplace. We held the higher levels of federal funds sold during the quarter, earning 25 basis points, with to belief that higher interest rates were at hand. That decision has proven to be a good one in light of where loan investment rates are today. Our average earning asset balance increased by approximately $100 million from…

For the loan portfolio, during the second quarter, total loans grew by $58.7 million or 2.17%. This growth was comprised of a $53.6 million increase in our residential portfolio and a $4.3 million rise in commercial loans. Year-over-year, the total loan portfolio has increased 7.92% with approximately $200 million to $300 million of growth. We were especially pleased with the second quarter residential loan growth as it built upon the momentum we had gathered during the spring season. The $53 million in growth compares favorably to a $19 million increase in the first quarter and a $36 million increase in the second quarter of last year. All market areas participated, with the continuation of strong activity from our Florida market. Our backlog of pending loans at quarter end remains solid. And although activity often slows a bit over the summer, we do look for continued growth in the coming months. Nonperforming loans and other asset quality indicators all showed improvement during the second quarter. Nonperforming loans decreased to $43.4 million as of 6/30 from $49.9 million at 3/31, while nonperforming assets also dropped from $59.7 million to $53.8 million as of 6/30. Included in these results was a sale of 17 nonperforming residential loans with a total net principal balance of $855,000 for a gain of $50,000. We do not, at this time, have any other loan sales scheduled, although we will continue to evaluate future opportunities as they arise. Nonperforming loans were equal to 1.57% of total loans at quarter end, down from 1.96% at year end. The allowance for the second quarter covered annualized net charge-offs by 5.8x, while the covered ratio or allowance for loan loss to nonperforming loans was 109.5% at June 30 compared to 91% at 12/31. Although the foreclosure process remains lengthy in both our primary market areas, we have been encouraged by the strong demand for most properties once we have been able to obtain title. This has been especially true in recent months in our Florida market. Rob?

That's our story, and we'd be happy to answer any questions that you have.

[Operator Instructions] Our first question comes from Travis Lan of KBW.

Bob, did you say that you've increased loan offering rates by about 100 basis points since the rates started to rise?

From our low at the end of the period to where we are today it's up by about 100 basis points.

Okay. How have you seen that that's impacted mortgage application volumes? I know it's a short sample period but…

We've been pretty solid, Travis, because at the higher rates, we could be more competitive. We're at 4 5/8% right now, and we're seeing much more purchase business now than we are refinance business. So we're encouraged by the results, actually. We've also built the reputation that we can get loans closed, which the real estate community appreciates in the markets we serve.

Got you. Rob, in the press release, sounds like your comments indicated that there's been some reengagement in Florida, not that you backed off entirely at any point. But could you talk about that a little bit? And then, whether are your branch expansion model, kind of extends there as well?

Travis, it's Bob Cushing. Was your question some reengagement in Florida?

Well, just in the press release, some of Rob's comments said that -- or seemed to indicate that you're seeing positive trends in Florida, and I think that's kind of on the back burner maybe for the last couple quarters. Just wanted to hear a little bit more about that and whether your branch expansion...

Well, we've built a terrific branch network, you know that, throughout Central Florida, Travis. And we have 2 new branches planned on the East Coast to Florida kind of infill. If you remember, we opened Juno Beach to define kind of the southern border of our market area. And then, we were in Port Orange, which is just north of Daytona. So we're going to infill in Stuart and Ormond Beach, and those are our 2 newest branches. We're very encouraged by our results in Florida, and things are pretty good there. As Scott alluded to, if we do take something back, it goes very, very quickly. The real estate market is pretty good there, and the quality of the applications we're looking at I don't think has ever been higher, Travis.

And is that on both...

Loan demand in Florida has been a positive for us. This last -- this whole year really has been a positive.

And would that be on both the consumer and the commercial side?

Well, we're not a big commercial lender, period, Travis, as you know, and we don't do a lot of commercial lending in the state of Florida. So while there has been additional opportunity, mostly in the residential area, most of the growth has been consumer.

Got you. And then, just the last question. So based on what we've seen in the interest rate environment in the last few weeks in terms of stability as opposed to kind of this continued run up higher in the 10-year, do you expect to kind of reutilize more liquidity in the short term, or do you think you should maintain kind of this level of excess liquidity for the foreseeable future?

Well, as I said, we're going to cautiously release some of the funds and begin investing. We agree with the stability -- the point you made with regard to stability, and it appears the rates have tailed off from a rising perspective. So we're going to put some of the money to work.

[Operator Instructions] As we have no further questions, this concludes our question-and-answer session. I would like to turn the conference back to Robert McCormick for any closing remarks.

Thank you for joining us this morning, and have a great day.

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