Good morning, and welcome to United Community Banks' Second Quarter Conference Call. Hosting the call today are President and Chief Executive Officer, Jimmy Tallent; Chief Operating Officer, Lynn Harton; Chief Financial Officer, Rex Schuette; and Chief Risk Officer, David Shearrow. United's presentation today includes references to core pre-tax, pre-credit earnings and other non-GAAP financial information. For each of these non-GAAP financial measures, United has provided reconciliation to GAAP in the Financial Highlights section of the news release and at the end of the investor presentation. Both are included on the website at www.ucbi.com. Copies of today's earnings release and investor presentation for the second quarter were filed this morning on Form 8-K with the SEC. And a replay of this call will be available on the company's Investor Relations page at ucbi.com. Please be aware that, during this call, forward-looking statements may be made by United Community Banks. Any forward-looking statements should be considered in light of risks and uncertainties described on Page 4 of the company's Form 10-K and other information provided by the company in its filings with the SEC and included on its website. At this time, we will begin the conference call with Jimmy Tallent.

Good morning, everyone, and thank you for joining us for our second quarter earnings call. As you know, from our pre-announcement, we have 2 very significant events late in the quarter. The accelerated sales of classified assets and the release of a deferred tax asset valuation allowance. Those 2 events significantly influenced second quarter results and will have a profound positive impact on our company going forward. For that reason, I want to cover those 2 items first and then discuss the rest of our second quarter results. I'll begin with a little background. Late last year, our management team developed a list of key 2013 goals, in addition to our financial goals for growth and expense reduction. It was a list we believe we must accomplish to achieve our longer-term strategic goals. It included settlement of a Fletcher matter, resolution of the SEC investigation, remarketing of the TARP preferred stock, reduction of our classified asset ratio below 30%, restoration of our deferred tax assets and the listing of our MOUs. By reversing the DTA valuation allowance and accelerating the classified asset sales, I'm pleased to report that, through the second quarter, we accomplish nearly everything on that list. I'm very proud of our people and all that they have achieved. The path is now clear for us to focus exclusively on the things that we do best, growing our business and earnings. The accelerated sale of $172 million of classified assets and the DTA valuation allowance release of $272 million had a significant impact on the numbers. So I will discuss them in further detail now. Both had been in the works for several quarters. Following our recapitalization in 2011, we had been making steady progress in reducing classified assets and cleaning up the remaining legacy problem credits from…

[Operator Instructions] Our first question is from Michael Rose from Raymond James. Michael Rose - Raymond James & Associates, Inc., Research Division: I wanted to just get some color on a couple of clarifications that were in the slide deck. I think you said that you expected mid single digit loan growth this year. And I just want to make clear that, that assumes -- or that incorporates the bulk sales this quarter.

Michael, this is Rex Schuette. If you think about the bulk sales included in the quarter, we had $151 million of loans that were sold, and we're down $5 million. And again, in the quarter, as Jimmy indicated, we have the opportunity to acquire another $104 million of indirect auto. So that leaves us roughly in the range of about $47 million, $48 million of net growth when you look at a linked-quarter basis, which is about 5% growth for the quarter. So we still expect to be in that range -- in the mid-single-digit range, Michael. Michael Rose - Raymond James & Associates, Inc., Research Division: Okay. That's helpful. And then, I think you said the margin was going to be down 3 to 5 basis points. Now is that for the full year -- year-over-year? How do we read that 3 to 5 basis points that was on the slide deck?

Yes. I think it's going to be in probably the upper end of that range, 4 to 5, Michael, over the next 2 quarters, but it should level out. After that, we do have, as Jimmy indicated, repricing of some of the HELOC coming in the second quarter. And part of it is really just to balance off of the new loan growth that we have coming on. And again, it's competitive, and that's really been -- 2/3 of the margin decrease from last quarter is primarily related to loan pricing and 1/3 of that -- the other 1/3 in round numbers is related to the securities portfolio, where again we're focused on putting on floating-rate securities versus extending and taking just a slightly lower yield. And we have a little bit of pickup offsetting that with respect to lower deposit costs down 3 basis points overall for interest-bearing deposits. Michael Rose - Raymond James & Associates, Inc., Research Division: Okay. So the way to read that is, from the 3.31% you'd expect -- the 3.31% you'd expect another 3 to 5 basis points of compression in the back half of the year.

I think in each of these next 2 quarters. Michael Rose - Raymond James & Associates, Inc., Research Division: Okay. So that's per quarter? Okay.

Then it's leveling off -- we see it leveling off. Michael Rose - Raymond James & Associates, Inc., Research Division: Okay. That's helpful. And then, just 1 final question. Given the drop in classified this quarter, how should we think about the loan loss reserve level, where does it normalize and would you expect the kind of under provision here for a couple of more quarters?

Yes. Michael, it's David. Yes, we would expect that we'll continue to have some level of under provisioning over the next few quarters just as our loss rates will keep dropping and the de-risking of the balance sheet. I think, in the longer term, we'll probably end up somewhere in the mid-1s -- around a 1.5, and I think it will take a little while to get there. So somewhere between that and where we are today by the end of the year, would be a pretty good proxy.

Our next question is from Kevin Fitzsimmons from Sandler O'Neill. Kevin Fitzsimmons - Sandler O'Neill + Partners, L.P., Research Division: Just a couple of questions. First, 1 quick question on credit. I noticed that NPL inflows actually increased this quarter. And just if you can touch on that whether that's anything to be concerned about or what was driving that? And then, secondly, in terms of capital planning, Jimmy, if you could just give us any kind of sense for timing on when you might -- we might expect resolving former TARP. Whether it would happen all at once, whether it would happen in installments? And maybe if you can lay out for us, if possible, your funding sources like, for example, the cash you already have at the holding company, the amount of cash you would hope to dividend up from the bank? And then, what, if anything, is left over to look at using some of the alternatives like you mentioned?

David, I'll take the last part of that, and then I'll also ask Rex if he would to help on clarification. Number one, it's been a series or phases that we have been working through and, of course, the first phase, getting our credit -- our legacy credit issues behind is very key. Certainly, at some point, as our MOU would be lifted, which, of course, will provide the dividend capacity back from the bank up to the holding company, which will play a key component in that process. We have been looking at the -- our equity and the cost of that now for several quarters. As I said a few moments ago, we don't have an absolute plan because each one of these components, we believe, play into restructuring and lowering the costs. Certainly, the Crowe rating last night will -- in our opinion, will help that process. But over the next 2 to 3 quarters, this plan not only will be designed but implemented during that period of time, some of the instruments, certainly, the more expensive, the one that we have coming due in February of next year, of course, that would be paid off. So there is just a number of components that we're looking at. Bottom line is we know that we will absolutely reduce the cost of the debt equity. That time period will occur over the next 2 to 3 quarters, and we strongly believe in the execution of that with these several million dollars of additional savings for the company. Rex?

Yes. Let me just add that to that. Current cash at the parent company is just under $46 million. We have dividend capacity later in '13 of roughly $24 million from last year, 2012, which is 50% of earnings. We'd have dividend capacity in '14. We're, year-to-date, at $236 million. So conceptually, you'd have 1/2 of that or $118 million-plus remaining in the year -- in 2014. So we have capacity -- kind of the question you're driving at we have capacity from the bank to dividend up to the parent company later in this year and into the first quarter of next year. We're reviewing that with the regulators. So I do think, as Jimmy indicated, there's high cost of debt equity we have at the books. $48 million of our TruPS are averaging 9.27%. And as Jimmy indicated in his prepared remarks, the $180 million goes up to 9%. We think we can access the market and lower that or renegotiate. So we have a lot of opportunities that we're looking at, and we'll be working through that over the next few quarters.

I think there -- and there was 1 other question on the inflow. Yes, there was a little bit of a tick-up. We had about $10 million of inflow last quarter, and we are up about -- to about $13 million this quarter. When you look at the content there, most of the increase was in resi mortgage. I don't think there's any story there really other than there was a -- just an aberration in this quarter. I think, based on what I'm looking at from past dues and what I expect going forward, I would expect it to come back down more in line with what we've had in the prior couple of quarters. And we've seen a little bit of volatility quarter-to-quarter in the resi mortgage portfolio. Overall, inflow -- total inflow will drop. With the de-risking, I would expect our inflow over the next couple of quarters to be somewhere in the, say, $7 million to $8 million range.

Our next question is from Matt Olney from Stephens.

Circling back on Kevin's question on the debt pay-down, can you talk a little bit more about the priorities of -- which debt structures, or trust preferred structures that you're hoping to redeem or refinance initially?

Yes, let me take a stab at that. Of course, first is the overall troughs that -- it is the most expensive. We certainly would want to address that first. That's balanced off with the benefit of the Tier 1 capital treatment. That's balanced off with the part of the -- what I call, the old-bill TARP and the benefit of being able to pay that down at all at any point in time. That's also balanced off in the fact that the dividend capacity that we have this year and certainly next year relative to classified assets. So there's a number of components that we're looking at so that we make the right decision from a cost standpoint, but also a right decision from a capital standpoint.

I guess, the only thing I would add, if you're looking at our trust preferred securities, is $48 million -- a little over $48 million that average over 9%. That, as Jimmy indicated, would be at the top of the list. We have flexibility. Those are callable, and most of them continuous, having flexibility -- and as Jimmy noted, having the optionality on the preferred, the $180 million, there's a lot of value to that and gives us a lot of flexibility of when we want to call it and the time period and, again, really trying to utilize cap position from the bank at the same time and balancing this off to lower our overall costs going forward in '14.

Okay. That's great color. And then, switching gears over on the other side, you mentioned the ROA goal of 1%. Can you talk more about that? And how much of that is -- of the anticipated improvement is based on revenue enhancement versus continued expense reductions? Because it sounds like you continue to hire new teams of lenders. So I'm guessing most of that improvement is going to have to be on the revenue side. Is that fair to say?

That's fair to say. And though I don't have absolute percentages around each component -- but basically, the first phase, which we've just completed, is lowering our credit cost and, of course, the return to the DTA and the taxability of earnings going forward, which, in my view, kind of balances where we are today on the ROA component. The next phase, that we are laser-focused on is lowering the cost -- the debt costs within the holding company. Certainly, that will contribute a component of additional ROA strengthening. Another part of that, of course, is restoring our dividend capabilities from the bank to the holding company, which ultimately will determine the amount of contribution that, that will provide. But it will absolutely provide what we believe a fairly significant amount towards the 1% ROA. A third component is to continue to grow our loan portfolio. We've added the additional teams, the South Carolina team, the Nashville team, but also to -- we're beginning to see strengthening in the number of our existing markets. Certainly, the headwind there is the margin compression. But the truth is that we have to grow our loan book in a very prudent manner and grow interest revenue because the margin compression is going to remain in the near term. The other component that will play a significant component to that would be the growth of fee revenue piece. Now this is obviously the mortgage and the brokerage that we've talked about, whereby we actually are very close to bringing in senior leadership on the mortgage as we have already on the brokerage. But this is across the board, this is not just these 2 items, it includes debit cards, merchant services, treasury. Every one of these will be additive as we focused more accountability in each one of those areas. And then, the last component is continuing to control and reduce expenses and improve operating efficiency.

Thank you. We have no more questions. Thank you. I'll turn the call over to Jimmy Tallent, President and CEO, for closing remarks.

Thank you, operator. Let me thank everyone for being on the call. We sincerely appreciate your interest in the company. Please reach out to any of us today or later if additional questions arise. I also want to once again compliment our team of United bankers who every single day get up and suit up in a very successful way of commitment and execution and moving our company forward. Thanks again for being on the call. We look forward to speaking to you at the end of the third quarter. Hope you have a great day.

Ladies and gentlemen, this does conclude today's conference. You may now disconnect. Everyone, have a great day.