You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: As always, we appreciate your interest in Central Pacific Financial Corp.
Let me start first with some positive updates on the Hawaii economic recovery.
Visitor arrivals from the U.S. Mainland to Hawaii have returned much quicker than anticipated, a good sign for economic recovery.
The daily arrival count have averaged about 30,000 per day since June, which is nearly at pre-pandemic level.
In early July, the state of Hawaii began allowing arriving passengers to skip pre-testing and quarantining with proof of full vaccination against COVID in the U.S. Although we are not immune to the spike caused by the Delta variant, Hawaii's COVID infection rates continue to be at very low level, with our infection rates currently at the lowest in the nation.
Nearly 60% of our state population is fully vaccinated as of July 21, 2021.
The state of Hawaii's unemployment rate declined to 7.7% in the month of June and is forecasted by the University of Hawaii Economic Research Organization to decline to 4.8% in 2022.
The housing market in Hawaii remains hot with the median single-family home price at $979,000 in the month of June.
Our financial results for the second quarter were very strong, with quarterly pre-tax income reaching a new record high.
With increased confidence in the Hawaii economic recovery and our continued solid asset quality, liquidity, and capital, we resumed share repurchases during the second quarter and continue to pay our quarterly cash dividend.
Against this backdrop, we are very optimistic about our future business profit.
Digital continues to be a key strategic priority for us.
Enhancements to our online and mobile banking platforms are being made on a continual basis.
Additionally, in the second quarter, we issued new contactless debit cards to all of our customers and increased mobile deposit adoption among our customer base.
Further, online chat is now available and online appointment schedule is coming soon to make banking easier and more convenient for our customers.
We continue to work diligently on our product and service development in the digital area.
First, I'd like to provide an update on the credit area.
We are pleased that our clients have weathered through the challenges of the pandemic.
Nearly all of the loans we granted, COVID-related payment deferrals have returned to pay status.
As of June 30, we have just $3.5 million in loans remaining on deferral, the majority of which are residential mortgages.
Additionally, our classified assets declined during the quarter to $42 million, and our nonperforming assets remain near historic lows at just nine basis points of assets.
I'd also like to share about a recent developments in the environmental, social, and governance or ESG area.
In the second quarter, we were pleased to publish our first annual 2020 ESG report.
We continue to develop our ESG reporting and look forward to providing further updates in the future.
CPB's legacy in helping the small business community is one of the pillars of our ESG program and remains a key priority for us.
Last week, we were pleased to announce the new program run by our CPB foundation call We, that is W-E By Rising Tide.
This program supports women entrepreneurs as we believe they are key to building a strong and resilient economy.
As part of this program, we selected our first cohort of 20 women entrepreneurs from seven different business sectors that will participate in a 10-week series of workshop on financial management, marketing, and leadership and receive free advertising and networking benefits.
Support of our employees is another color of our ESG program.
We believe that investing in our employees is critical to our success.
During the second quarter, we had our annual merit increases and we made a few key strategic new hires.
We also continue to prioritize the health and well-being of our employees and therefore, continue to allow flexible work schedule while developing our hybrid return-to-office plan.
Finally, we are pleased that the second and final phase of our Central Pacific Plaza revitalization was completed last month.
We expect smaller office projects to continue as we create collaborative, refreshed, and sustainable workplaces for our employees.
We also continue to refresh our branches and evaluate our branch network to meet the changing needs of our customers.
In the second quarter, our core loan portfolio decreased by $103 million or 2.3% sequential quarter, which was offset by PPP paydown of $163 million.
Year-over-year, our core loan portfolio increased by 3.7%.
The core loan growth was broad-based across all loan categories, except C&I, which as everyone knows, was because Customer segment most impacted by the pandemic and now in recovery.
Our residential mortgage production continues to be very strong, with total production in the second quarter of nearly $280 million and total net portfolio growth in residential mortgage and home equity of $48 million from the previous quarter.
We ramped up 2021 new PPP originations during the second quarter with over 4,600 loans totaling more than $321 million.
I am proud of our team for maintaining a leadership role in supporting our small business customers and the broader business community.
PPP forgiveness is also progressing well with 70% of the loans originated in 2020 already forgiven and paid down through June 30.
Assisting our customers with the forgiveness process has been a key priority for the bank as the local economy begins to recover and our business customers begin to pivot from surviving to thriving in.
During the second quarter, with confidence that the national economic recovery was gaining strength and the local economy was on its way to recovery, we resumed our consumer lending programs on the Mainland and in Hawaii.
During the quarter, we purchased an auto loan portfolio from one of our established partners and also restarted other consumer programs on an ongoing full basis for consumer direct and indirect loans on the Mainland and in Hawaii.
While it was a prudent process to span our consumer programs last year despite what we experienced in the economic downturn, both our Mainland and Hawaii consumer portfolios performed well, augmented by the support from federal stimulus programs.
With Hawaii's economic recovery expected to take traction, combined with our healthy loan pipeline, we anticipate strong loan growth for the second half of the year.
On the deposit front, we saw a strong inflow of deposits with total core deposits increasing by $279 million or about 5% sequential quarter growth.
On a year-over-year basis, total core deposits increased by $705 million or 13.8%.
Additionally, our average cost of total deposits outweigh the second quarter by just six basis points.
Finally, I want to mention that the Hawaii economy is recovering and consumer confidence is increasing.
We are seeing positive trends in transactional fee income recovery, including investment services fees.
Net income for the second quarter was $18.7 million or $0.66 per diluted share.
Return on average assets was 1.06% and return on average equity was 13.56%.
Net interest income for the second quarter was $52.1 million, which increased from the prior quarter, primarily due to greater recognition of PPP fee income due to higher forgiveness.
Net interest income included $7.9 million in PPP net interest income and net loan fees compared to $5.2 million in the prior quarter.
At June 30, unearned net PPP fees was $15.9 million.
Net interest margin decreased to 3.16% compared to 3.19% in the prior quarter.
The net interest margin normalized for PPP was 2.93% compared to 3.12% in the previous quarter.
The normalized NIM decrease was due to an acceleration of MBS premium amortization, excess balance sheet liquidity, and lower investment and loan yields.
Investment MBS premium amortization increased by $900,000 sequential quarter due to an acceleration of prepayments in the second quarter.
To mitigate the prepayment risk going forward, we executed a sovereign coupon MBS bond swap totaling $175 million.
We continue to deploy excess liquidity to the loan and investment portfolios to further support our net interest margin.
Second quarter other operating income remained relatively flat at $10.5 million.
During the quarter, there was a decrease in mortgage banking income, which was offset by higher service charges and fees and bank-owned life insurance income.
Other operating expense for the second quarter was $41.4 million compared to $37.8 million in the prior quarter, with much of the increase in the salaries and benefits line.
The current quarter increase in salaries and benefits was primarily due to $1.2 million in nonrecurring reductions in the prior quarter and $2.8 million in higher incentive compensation and commission accruals, strategic hires to drive forward performance, and annual merit increase.
The efficiency ratio increased to 66.2% in the second quarter due to higher other operating expenses.
We expect the efficiency ratio to moderate and improve over time as we drive positive operating leverage based on our strategic investments.
Net charge-offs in the second quarter totaled $0.8 million, with the majority of charge-offs coming from the consumer loan portfolio.
At June 30, our allowance for credit losses was $77.8 million or 1.68% of outstanding loans, excluding the PPP loans.
In the second quarter, we recorded a $3.4 million credit to the provision for credit losses due to improvements in the economic forecast and our known portfolio.
The effective tax rate was 23.9% in the second quarter and going forward, we expect the effective tax rate to be in the 24% to 26% range.
Our capital position remains strong and as Paul noted earlier, we resumed share repurchases this quarter with repurchases of 156,600 shares at a total cost of $4.3 million.
We've also repurchased an additional 78,000 shares of common stock month-to-date through July 20 at an average cost of $24.93.
Finally, our Board of Directors declared a quarterly cash dividend of $0.24 per share, which was consistent with the prior quarter.
In summary, Central Pacific has a solid financial credit, liquidity, and capital position, and we continue to make positive forward progress on our core business strategy.
Further, we remain committed to providing support to our employees, customers, and the community as we continue to progress through the economic recovery.
At this time, we'll be happy to address any questions you may have.
Back to you, Andrew.

user
compname reports increase in second quarter earnings to $18.7 million.
compname reports increase in second quarter earnings to $18.7 million.
q2 earnings per share $0.66.
net interest income for q2 of 2021 was $52.1 million.

assistant