mortgage market, we sold covered call options on mortgage bonds, which produced gains of $6 million and are embedded in fair value gain adjustments. We expect to regularly execute these types of trades and in fact have already realized $3 million of income in July. Non-interest expense increased less than $9 million from the prior quarter to $583 million. Deposit costs rose $16 million due to a full-quarter impact of significant back-weighted mortgage warehouse deposit growth in Q1. Pre-provision net revenue of $412 million was 25% higher compared to Q2 2025, highlighting the continued growth in the earnings power of the franchise. Provision expense of $80 million was mostly a function of loan growth and net charge-off replenishment. Earnings per share of $2.36 was 6% above our adjusted ETS of $2.22 in Q1, or 14% higher year-over-year. Turning to the balance sheet on slide 5, securities and cash declined $2.4 billion, primarily driven by a $2.6 billion reduction in cash as we deployed more liquidity into increased loan growth. Securities and cash as a percentage of assets moved closer to the mid-20% area, while our HFI loan-to-deposit ratio increased to 74% and closer to our medium-term target of 77% to 80%. Total quarterly HFI loan growth was $1.8 billion and generated mostly from CNI growth, an area which continues to drive overall loan growth momentum. CNI growth was spread across our commercial banking businesses. As Ken discussed earlier, total deposits declined by $849 million during the quarter, reflecting the intentional reduction of approximately $1.2 billion of higher cost deposits as part of our ongoing deposit optimization efforts. Total assets remained just below $99 billion, though total equity expanded $227 million, mostly from retained earnings growth. Tangible book value per share rose $2.10 from the end of Q1 to $63.24, or 13% over the prior year from retained earnings growth and modest relief in our AOCI position. Looking closer at our loan growth trends on slide 6, C&I growth continues to fuel our overall HFI loan growth. Over 80% of quarterly HFI growth occurred in C&I categories. From a business line perspective, commercial banking grew $950 million, primarily from our specialty commercial banking verticals and hotel franchise finance within CRE. Our multi-year diversification efforts have led to C&I accounting for nearly 49% of the HFI portfolio, while CREX construction has declined about two points over the past year to 19.5% of the book. Looking at slide 7, deposits totaled $81.9 billion in Q2, an increase of $10.8 billion year over year. The $849 million decline in deposits from the prior quarter reflected our deposit optimization strategy, resulting in a reduction of over $1 billion in higher cost balances towards the end of the quarter, with another billion of additional reductions made during the first few weeks of Q3. Growth in commercial banking and specialty escrow channels, particularly business escrow services, as well as HOA helped balance the overall decline. Demonstrating our early success in improving funding costs, June's end-of-month total cost of deposits was approximately 1 to 2 basis points below Q2's total average cost of $1.78. Turning to our net interest drivers on slide 8, the securities yield expanded 5 basis points to 464, reflecting continued reinvestment at higher yields. HFI loan yields decreased 3 basis points to 582 as a function of ongoing remixing efforts into more CNI loans compared to CRE. On the liability side, interest-bearing deposit costs compressed 1 basis point to 274 from Q1. Overall liability funding costs declined 3 basis points from the prior quarter to 196, which was helped by higher average balances in non-interest-bearing deposits. The cost of funding earning assets also declined as average earning assets grew 3% from the prior quarter to 91.7 billion. Looking at slide 9, net interest income grew 31 million quarterly, or 16% annualized to $797 million, primarily from CNI-driven average HFI loan growth and higher average securities, which powered strong average earning asset growth. Net interest margin was relatively stable, compressing one basis point from Q1 to 353 as the interest cost of earning assets declined two basis points, while the earning asset yield declined 3 basis points. Turning to slide 10, the adjusted efficiency ratio of 49% increased 140 basis points from the prior quarter. When excluding the security gains of Q1, however, this ratio would have declined by about 150 basis points. On a year-over-year basis, the adjusted efficiency ratio dropped by almost 3 points. As mentioned earlier, non-interest expense increased approximately $9 million in Q2 from higher deposit costs related to higher average mortgage warehouse deposit balances. Excluding deposit costs, non-interest expense decreased $7 million from the prior quarter. Excluding the Q1 securities gains, operating leverage resumed in the second quarter with revenue growing three times more than non- interest expense on a quarterly basis. We believe these trends position us well to continue improving operating leverage.