Now, I’ll turn the call over to Scott Biar, our Chief Financial Office, and he will discuss the details of our quarterly performance. Scott?
L. Scott Biar
Thank you, Steve. For the quarter ended June 30, 2012, total investment income was $5.3 million or $0.25 per share compared to $5.6 million or $0.26 per share in the first quarter of 2012, and $9.1 million or $0.42 per share in the second quarter of 2012.
The year-over-year decline is attributable to $3.9 million of unusual interest income activity in the second quarter of 2011 including the recognition of $4.5 million of previously unrecognized PIK interest income on Tranche B of a Term Loan with Alden Resources, which we sold in July of 2011. And the reserve is 600,000 of previously recognized interest income on BioEnergy and Bionol Clearfield. The small sequential decline is primarily a function of slightly lower average investment portfolio balance due to the timing of principal pay downs and new investments during the first half of 2012.
Operating expenses for the second quarter of 2012 totaled $2.7 million, increasing less than 1% compared to the first quarter of 2012, and decreasing $700,000 or 21% compared to the second quarter of 2011.
The year-over-year decrease was primarily attributable to lower management fees to our investment advisor as a result of lower total asset balances, and because the second quarter of 2011 included $300,000 of investment income incentive fees that did not reoccur in 2012.
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