Second quarter 2010 total operating expenses decreased by $353 thousand or 3.1% to $11.2 million compared to the second quarter of 2009. This decline was primarily due to a $592 thousand (46.4%) reduction in FDIC and NYS assessment fees in 2010 resulting from a special FDIC insurance fund one-time assessment fee of $730 thousand recorded in the second quarter of 2009. This special assessment was imposed on all FDIC-insured depository institutions based upon the institution's total assets and Tier 1 capital. Excluding this special one-time assessment fee (non-GAAP financial measure), FDIC and NYS assessment fees increased by $138 thousand from $546 thousand in the second quarter of 2009. Other operating expenses decreased by $292 thousand (14.1%) due in part to lower outsourced audit expenses. Partially offsetting the foregoing expense reductions was a $638 thousand (10.7%) increase in salaries and other employee benefits in the second quarter of 2010 versus the comparable 2009 period. This resulted primarily from increased accruals of long-term, performance-based equity and incentive compensation, employee insurance costs and 401(k) and employee stock ownership contribution costs. In addition, it also reflects increases in the internal audit staff to further strengthen the monitoring of internal controls.The Company recorded income tax expense of $1.0 million in the second quarter of 2010 versus $459 thousand in the comparable period a year ago. Earnings Summary for the Six Months Ended June 30, 2010 The increase in net income in the first six months of 2010 to $4.7 million compared with a net loss of $4.0 million for the first six months of 2009 resulted from several factors, most notably a $5.8 million decrease in the provision for loan losses and increases in net interest income and non-interest income of $2.6 million and $5.7 million, respectively. Partially offsetting the foregoing positive factors was a $481 thousand increase in total operating expenses in 2010.